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Abstract: Interconnection Economics of All-IP Networks
Abstract
Interconnection Economics of All-IP Networks
The Review of Network Economics
Vol. 5, Issue 3 - September 2006, pp 351 - 365
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Abstract
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This paper is an exploratory study on the interconnection economics of All-IP networks. To understand the economics of the yet-to-be-realized All-IP networks, this paper begins with discussing three important features of current IP networks: packet switching, receiver benefit, and two-sidedness. It then develops simple models of interconnection for basic fixed fee settlements and for session-based charges. The analysis shows that interconnection settlements depend on network size, market competitiveness, direct and cross network externalities, and costs. Some policy issues are also briefly discussed.
Keywords: Interconnection, Internet protocol, two-sided
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