Article Abstract:
The various pricing and cost structures of internet networks is examined. At the top level of the Internet are the backbone providers (IBPs) who price their services based on the cost of their peering connections with IBPs. Internet Service Providers (ISPs) buy connections from IBPs or other ISPs and sell to users.
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Article Abstract:
As the hierarchical structure is broken down by new routing technology between internet service providers (ISPs) the power of core internet service providers, also known as backbone providers has weakened. The effect on contract negotiation between ISPs and backbone providers is examined.
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Article Abstract:
The inability to form a competitive equilibrium in a model of unregulated competition between interconnected networks results from large access charges. Large access charges and large network subsitutability was also shown to act as a barrier for effective competition since each network is shown to have an incentive to undercut to increase market share and avoid paying access charges.
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