We have developed a novel methodology for deriving bandwidth prices for premium direct peering between Access ISPs and Content Service Providers that want to deliver content and services in premium quality. We establish a direct link between service profitability, interconnection costs, and finally bandwidth price for peering.
Our overall objective is to present an open software tool, accurate enough to produce results that can be used as a basis for on-going discussions, negotiations, and debates around how a paid peering price must be determined. This platform must be adaptive, powerful, and flexible enough so as to enable the development of new market scenarios.
The extracted quantitative results could be offered to public discussion, strategy, policy, and decision-making in both business and government. Having concrete quantification is expected to help in resolving the long-standing tussle on the economics of peering, by offering a concrete starting point to which better debates can be anchored.
In the U.S. case study section, you are able to evaluate our model, and observe in which way, the various parameters of our model, affect the derived paid peering prices. A more detailed and thorough presentation of our model, along with its analysis and justification can be found here .
Moreover, in Evaluate New Scenario we extend our web-site in order to permit actual stakeholders to feed our model with their own data.