Sending party network pays
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Internet users are able to reach any server from any access point at any time due to the interconnection and the exchange of IP traffic between about 40,000 different Autonomous Systems. The ...

Internet users are able to reach any server from any access point at any time due to the interconnection and the exchange of IP traffic between about 40,000 different Autonomous Systems. The underlying business model for traffic exchange generates concerns among the network service providers (NSPs), resulting in deadlocks that are challenging the internet ecosystem. We introduce the Sending Party Network Pays (SPNP) model and demonstrate why this model can be considered to be a prerequisite to the deployment of QoS. We also outline ecosystem issues that can be addressed through this model and discuss its limitations.

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  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation
  • 16.04.2009 Autor / Thema der Präsentation

Sending party network pays Presentation Transcript

  • 1. The Evolution of Business Models in the Internet:Sending Party Network Pays as the basis for quality ofservice (QoS) support in the Internet.SESERV Future Internet Workshop, Athens, January 31st, 2012.Dr. Falk von Bornstaedt, Deutsche Telekom, International Carriers Sales andSolutions (ICSS). 2.11.2011 1
  • 2. Title. Subtitle.I pay 13€for WLAN in the hotel … and get only 2MByte in 40 minutes 2 w z f v b
  • 3. So I watch thecity panorama.No QoS either - only fog! 3
  • 4. In air travel, we arespending 1000s of €to get better quality. 4
  • 5. But we do not have asimilar option for the Internet! 5
  • 6. That‘s how we like it: NO CONGESTION! 6
  • 7. But the reality is often more like this!Solution? Add some lanes! 7
  • 8. Well, are you surethat many lanes will indeed solve the problem? 8 wzfvb
  • 9. Table of Contents • A Story from the 19th Century • Business Models in the IP Interconnection Market • The Revenue Model • Definition of the Sending Party Network Pays Principle • A first step towards End-to-End Quality of Service • Why no QoS without the Sending Party Network Pays Principle Business Model Innovation / Sending Party Network Pays 9 b v f z w
  • 10. A Story from the 19th Century  May 1st 1840 the “One Penny Black” was issued  One of the first Sending Party Pays Principles in the world was introduced Source: Wikipedia Business Model Innovation / Sending Party Network Pays 10 b v f z w
  • 11. Typical Traffic Exchange between two NSPs Content Eyeball (End user) A1 B1 Request of Content B2 A2 NSP A NSP B Delivery of Content A3 B3 Business Model Innovation / Sending Party Network Pays 11 b v f z w
  • 12. Input/Output Business Model Transformation Input Process Output External Resources Goods or Services Company internal Value Chain Universal Connectivity Connectivity c o s t s id e o f t h e s ourc e s of c ompa ny re ve nueSource: Own creation, after Chesbrough, H. et al. (2002), p. 532; Pecha, R. (2004), p. 15; Wirtz, B.W. (2000), p. 629. Business Model Innovation / Sending Party Network Pays 12 b v f z w
  • 13. Value Proposition / Revenue Model Business Model Business Model Architecture Value of Value Revenue Proposition Creation Model e.g. Universal e.g. Sending Party Connectivity (with Network Pays ensured SLA) Value ChainSource: Own creation, after Stähler, P. (2001), pp. 41. Business Model Innovation / Sending Party Network Pays 13 b v f z w
  • 14. Sending Party Network Pays Principle  Adresses the question of who pays for the transport of traffic over an interconnection – Should always be the sending side network when two NSPs are involved.  The Revenue Model behind the previous described Business Model  The Business Model of IP Interconnection on a Wholesale Level S e n d in g P a r t y N e t w o r k P a y s P r in c ip le Point(s) of Interconnection A1 B1 IP Packets NSP A2 NSP A B2 B Money A3 B3Source: Own creation, after Stähler, P. (2001), pp. 41. Business Model Innovation / Sending Party Network Pays 14 b v f z w
  • 15. Sending Party Network Pays Principle Why no End-to-End QoS without SPNP? Only the sender is in the position to decide which IP packets need premium quality (i.e. marking the IP Packet with the express tag) To inform the receiver that this packet needs special care The Idea of the SPNP is inspired by other industries, e.g. parcel or mail services Receiving party would not be interested in paying for QoS IP Traffic which then also has to be forwarded within their network The SPNP model does not address all the issues challenging the internet but contributes to enhance the eco-system. The Model just applies to the wholesale IP Interconnection Business Does not address how the traffic receivers actually pay for the content they receive. Business Model Innovation / Sending Party Network Pays 15 b v f z w
  • 16. Sending Party Network Pays Principlee n t S it u a t io n B e s t E f f o r t Content-/ Application financed by the end customer Content-/ Application Provider Best Effort Flatrate Content-/ Application financed by the Eyebal Advertising l ISP Industry Best Effort Transit Best Effort Transit Provider Peering or Transit Interconnection IP Transport with Best Effort NSP Best Effort NSP Client Source: After Brenner, W. et al. (2008), p. 270; Zarnekow, R. et al. (2008), p. 1064. Business Model Innovation / Sending Party Network Pays 16 b v f z w
  • 17. Sending Party Network Pays Principlee F u t u r e w it h Q o S Content-/ Application financed by the end customer Content-/ Application Provider Best Effort Flatrate Content-/ Application financed by the Eyebal Advertising l ISP Industry Best Effort Transit Best Effort Transit Provider Peering or Transit Interconnection NSP Best Effort NSP ClientSource: After Brenner, W. et al. (2008), p. 270; Zarnekow, R. et al. (2008), p. 1064. Business Model Innovation / Sending Party Network Pays 17 b v f z w
  • 18. Sending Party Network Pays Principlee F u t u r e w it h Q o S Content-/ Application financed by the end customer Content-/ Application Provider Best Effort Flatrate Content-/ Application Eyeba financed by the ll ISP Advertising Industry QoS Transit QoS Best Effort Transit Transit Peering or Transit Interconnection Provider QoS Interconnection IP Transport with QoS NSP NSP Best Effort ClientSource: After Brenner, W. et al. (2008), p. 270; Zarnekow, R. et al. (2008), p. 1064. Business Model Innovation / Sending Party Network Pays 18 b v f z w
  • 19. Sending Party Network Pays PrincipleWhy no End-to-End QoS without SPNP? Consider a Receiving-Party-Network-Pays-Model in the Internet for a Moment: – Incentives to send many packets in high quality classes and to generate revenues – These out payments of the ISP would be invoiced to the ISP’s customer – The customer would refuse this, if he receives undesired IP packets (e.g. spam) – RPNP would even enlarge fraud and spam problems – RPNP would be more complex than SPNP from a business process, IT systems and legal point of view Business Model Innovation / Sending Party Network Pays 19 b v f z w
  • 20. The Sending Party Network Pays Principle Sending Party Network Pays is the Future Jan 31st, 2012 20 b v f z w