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http://dx.doi.org/10.6109/jkiice.2014.18.1.1

Internet Network Pricing under the Change of Internet Traffic Patterns  

Jung, Song-Min (KMDC)
Jung, Choong-Young (Department of Business Administration, Hannam University)
Abstract
The characteristics of internet traffic was dramatically changed recently. Especially, the ratio of video traffic in internet network is highly increased. Because the video traffic changes the traditional interactive traffic transport into one way contents delivery, internet network pricing structure is not efficient to reflect this changes. The fundamental reason for these is the discontinuity between the cost and revenue of the internet traffic. Although the internet traffic is forecasted to grow highly, the revenue of network provider is not expected to increase as such. The present paper investigates various alternatives to improve the present business model and to accommodate traffic growth. Then, the desirable options is proposed to invoke the innovation and to reflect the price signal according to some criteria.
Keywords
contents provider; Internet traffic; Internet value chain; two-sided market;
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