Publication: Alternative revenue sources for Internet service providers
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2016
Defense date
2016-11-14
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Abstract
The Internet has evolved from a small research network towards a large globally interconnected network. The deregulation of the Internet attracted commercial entities to provide various network and application services for profit. While Internet Service
Providers (ISPs) offer network connectivity services, Content Service Providers (CSPs) offer online contents and application services. Further, the ISPs that provide transit services to other ISPs and CSPs are known as transit ISPs. The ISPs that provide Internet connections to end users are known as access ISPs. Though without a central regulatory body for governing, the Internet is growing through complex economic cooperation between service providers that also compete with each other for revenues. Currently, CSPs derive high revenues from online advertising that increase with content popularity. On other hand, ISPs face low transit revenues, caused by persistent declines in per-unit traffic prices, and rising network costs fueled by increasing traffic volumes.
In this thesis, we analyze various approaches by ISPs for sustaining their network infrastructures by earning extra revenues. First, we study the economics of traffic attraction by ISPs to boost transit revenues. This study demonstrates that traffic attraction and reaction to it redistribute traffic on links between Autonomous Systems (ASes) and create camps of winning, losing and neutral ASes with respect to changes in transit payments.
Despite various countermeasures by losing ASes, the traffic attraction remains effective unless ASes from the winning camp cooperate with the losing ASes. While our study shows that traffic attraction has a solid potential to increase revenues for transit ISPs, this source of revenues might have negative reputation and legal consequences for the ISPs. Next, we look at hosting as an alternative source of revenues and examine hosting of online contents by transit ISPs. Using real Internet-scale measurements, this work reports a pervasive trend of content hosting throughout the transit hierarchy, validating the hosting as a prominent source of revenues for transit ISPs. In our final work, we consider a model where access ISPs derive extra revenues from online advertisements (ads).
Our analysis demonstrates that the ad-based revenue model opens a significant revenue potential for access ISPs, suggesting its economic viability.
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Internet Service Providers (ISPs), Network infrastructures, Traffic attraction