Network Neutrality: Discrimination of VoIP traffic

Bikram Acharya11-12-2012

For businesses◦ Security at a lower cost

For consumers◦ Cheaper and simpler pricing

For service providers◦ Lower investment, capital and

operating costs◦ Entry into new markets◦ Enhanced innovation◦ New business models

Why VoIP is gaining ground

The obstacles to VoIP

•Problems with QoS and reliability•Resistance by incumbents•Regulatory uncertainty.•Specific regulatory requirements

Internet and Voice Penetration world

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

1000

2000

3000

4000

5000

6000

0

10

20

30

40

50

60

70

80

90

100

Subscriptions (in millions)Per 100 inhabi-tants

Mob

ile-c

elul

lar

subs

crip

tions

(m

illio

ns)

Per

100

inha

bita

nts

Global mobile-cellular subscriptions, to-tal and per 100 inhabitants, 2001-2011

Source: ITU World Telecommunication /ICT Indicators database

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

10

20

30

40

50

60

70

80

90

100

De-velopedWorldDe-velop-ing

Per 1

00 in

habi

tant

s

The developed/developing country classifications are based on the UN M49, see:http://www.itu.int/ITU-D/ict/definitions/regions/index.htmlSource: ITU World Telecommunication /ICT Indicators database

Individuals using the Internet per 100 inhabitants, 2001-2011

Licensing of VoIP

Subscriber of VoIP

Source: DATE

Source: Point Topic

VoIP Market share

Source: IDATE

Future of Voice!!!

To identify the collaborative way to make sustainable to traditional telephony system and new IP telephony system in same ground

Finding the strategic action to make competitive business with any new comer in the field

How to make supportive environment for the innovative technology

Research Question

Neutrality regime is better than tiered QoS Producer surplus optimize for both VoIP and

WBITP , consumer will enjoy with neutral regime and enjoy free calls social welfare

Hypotheis

Network Neutrality Product Differentiation Vertical Integration Two-sided markets Tiered services VoIP

Keywords

Internet was based on the fundamental principles of openness and nondiscrimination

Consumers and innovators do not have to seek permission before they use the Internet to launch new technologies, start businesses, connect with friends, or share their views.

Preserving Free and Open Internet: Transparency, No Blocking, No unreasonable discrimination1

Network Neutrality

Product Differentiation

Network Provider:• Different QoS for Delay and congestion sensitive application• Pricing according to QoS

•Tiered service• Speed lane better QoS • Normal lane acceptable QoS • Slow lane below acceptable QoS

profit

demand

sup

ply

demand

sup

ply

profit

Two sided market

Regular traffic

Mobile VoIP Service

Voice Call

MM

S

Advertisement

Wireless Broadband Operator with telephony

Subscribers

Regular Traffic

Revenues

Mobile VoIP Service

Voice Call

MM

S

Advertisement

Wireless Broadband Operator with telephony

Regular traffic

Subscribers

Regular Traffic

Revenues

Different QoS for different service•QoS for Voice •QoS for Text•QoS for Advertisement

WBITP can also generate revenues through data

Can capitalize every bits into cents Innovation supportive platform not only

policy Social welfare will be optimize

Two-sided markets

QoS Tiered servicesNetwork Neutrality for advertisement

Tiered QoS for advertisement

Network Neutrality for voice

Tiered QoS for voice

Network Neutrality

Tiered QoS

VoIP

WB

ITP

Krä

mer, J., &

Wie

wio

rra, L. (2

01

2).

WBITP2

VoIP2

Subscribers

VoIP1

WBITP1

Krämer, J., & Wiewiorra, L. (2012). Network Neutrality and Congestion Sensitive Content Providers: Implications for ContentVariety, Broadband Investment, and Regulation.

(2007). 6 J. ON TELECOMM. & HIGH TECH. L. . Altman, E. e. (2011). A model of network neutrality with usage-based prices. Atkinson, R. e. (2010). The InTerneT economy 25 years afTer .com Transforming CommerCe

& Life. Bandyopadhyay, S. e. (2009). THE VERTICAL INTEGRATION OF CONTENT AND BROADBAND

SERVICES: THE NET NEUTRALITY DEBATE. Beard, T. e. (2007). Network Neutrality and Industry Structure. Carlee, J. e. (2012). Pricing by Timing:Innovating Broadband Data Plans. Chetty, M. e. (2012). “You’re Capped!” Understanding the Effects of Bandwidth Caps on

Broadband Use in the Home. FCC. (2010). FCC FCC 10-201 released December 23, . Ha, ,. e. (2012). TUBE: Time-Dependent Pricing for Mobile Data. Hwang, J. L. (2011). Internet Pricing and Network Neutrality: How Internet Pricing Schemes

Affect the Incentives of Internet Service Providers. Rouskas, N. G. (2009). On Internet Tiered Service. Sen, S. e. (2012). Incentivizing Time-Shifting of Data:A Survey of Time-Dependent Pricing

forInternet Access. COMMUNICATIONS NETWORK ECONOMICS . Singer, H. (2007). Net Neutrality: A radical form of non-discrimination.  

References