In this case study, we feed data from the U.S. market, in order to investigate quantitatively the volume and the direction of premium peering payments in the U.S. Internet market. Throughout our experiments, it has been revealed that three parameters have the pronounced impact on the prices of premium peering.

  • The loyalty of end-users towards their access provider (A-ISP)
  • The loyalty of end-users towards their provider of their favourite type of content (CSP)
  • The magnitude of the increase of the end-users' engagement times due to a premium peering agreement
You are able to choose which A-ISP-CSP to be analysed. We include the most significant access and content providers of the U.S. market. Furthermore, we assume that no previous peering agreements have been established in the ecosystem. Subsequently, you must choose your estimation of the end-users' stickiness towards the chosen A-ISP and CSP. End-users' stickiness, ranges from 0 (zero loyalty) to 1 (full loyalty).

As the economics of peering are among the thorniest tussles of the today's Internet, we modularize the design, by investigating separately the premium peering price of each type of service. We include the most significant services of the current Internet market: search, video, social networks (osn) and gaming. After the establishment of the premium agreement between an A-ISP and a CSP, end-users are getting more engaged to their favourite service due to improved QoE. In our scenario we include two possible estimations of the end users' engagement times:
  1. Conservative estimation (the peering agreement has not a significant impact on the end-users' engagement times).
  2. Optimistic estimation, where the post peering engagement times are doubled.
Moreover, we provide an additional option of considering a CDN co-located with customers (at DSLAMs), that can effectively serve the traffic. We use a CDN cost of $4K per Gbps per month. Alternatively, without the presence of a CDN in the access network, we consider only interconnections costs for the A-ISP, but no further costs from the increased traffic in the access network. In this case, both the A-ISP and the CSP incur significant IXP costs. After submitting your scenario, you will be able to see the derived monthly fees (in $), and the translation of these fees to $ per Gbps per month.
A-ISP CSP A-ISP's loyalty CSP's loyalty Type of service End-users' engagement time increase USE OF CDN
Conservative estimation
Optimistic estimation
Custom estimation