Multihoming, Content Delivery Networks, and the Market for Internet Connectivity
Journal
Telecommunications Policy
ISSN
0308-5961
ISSN-Digital
1879-3258
Type
journal article
Date Issued
2011-07-01
Author(s)
Research Team
IWI4
Abstract
Peering points between different Internet service providers (ISPs) are among the bottlenecks of the Internet. Multihoming (MH) and content delivery networks (CDNs) are two technical solutions to bypass peering points and to improve the quality of data delivery. So far, however, there is no research that analyzes the economic effects of MH and CDNs on the market for Internet connectivity. This paper develops a static market model with locked-in end users and paid content. It shows that MH and CDNs create the possibility for terminating ISPs to engage in monopolistic pricing towards content providers, leading to a shift of rents from end users and content providers to ISPs. Implications for future innovations are discussed
Language
English
Keywords
Internet economics
Quality-of-service
Price discrimination
Paid content
Innovation
Net neutrality
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier Science
Publisher place
Amsterdam
Volume
35
Number
6
Start page
532
End page
542
Pages
11
Subject(s)
Eprints ID
121013