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Study on the Internet Industry Structure under the NgN Regime-Competitive Landscape of ISPs, CPs, and CDNs  

Kim, Do-Hoon (경희대학교 경영대학)
Publication Information
Korean Management Science Review / v.23, no.3, 2006 , pp. 243-257 More about this Journal
Abstract
ITU-T's NgN(Next generation Network) architecture is expected to offer a new Internet platforms such as QoS(Quality of Service) guaranteed services as it overcame the limitations of the existing best-effort Internet architecture. However, policy development crucial for the NgN framework(e.g., interconnections and billing) is lagging far behind technology development. For example, arguments over network neutrality clearly indicate little understanding of the Internet industry structure where diverse providers including ISP and CP coexist. This study employs a network economics approach to predict how the competitive landscape involving various providers will evolve under the traffic-based billing system under the NgN environment. Applied is the non-cooperative game theory, in particular, Stackelberg's repeated game in order to build and analyze model for competition among those providers. We also studied possible impacts that CPs would have on the competitive landscape if they have an option to replace ISP: i.e., CDN(Content Delivery Network) provider. Lastly, based on the model analysis and experiments, presented are their implications to policy development and tile future prospect.
Keywords
NgN; Convergence; Internet Industry; ISP; CDN; Stackelberg Game;
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