Transcript presentation source

The Direction of Value Flow in
Multi-service Connectionless Networks
Bob Briscoe
BT Research
7 Oct 1999
context
context
pricing
clearing
scenarios
summary
why think about this?
 theory of the value of communications:
– connection-oriented hegemony
[ITU96, Zull97, Clark96, MacKie-Var92]
 confusion is abroad in the world
– junk advertising, bundling content+network
 why assume multicast sender pays?
 alternative proposal seems obvious
– but wasn't when I started
7 Oct 1999
Direction of Value
3
context
context
pricing
clearing
scenarios
summary
context
 multiservice, multicast IP (real-time apps)
 some services usage-charged, whether
packet, flow or even longer term granularity
 electronic tariff announcement
 buyer's market
 designed for bundling
– will cover in a future paper...
7 Oct 1999
Direction of Value
4
context
context
pricing
clearing
scenarios
summary
what business?
end-system
applic’n
present’n
 link (wholesale cost)
 network
 connection? (not supplied)
session
e-commerce
transport
applic’n
present’n
session
transport
network
network router
network
network
link
link
link
link
physical
physical
physical
physical
7 Oct 1999
Direction of Value
5
context
context
pricing
clearing
scenarios
the value of place
value1 = f(i, place1 , time1 )
summary
i
value2 = f(i, place2 , time2 )
 xmt value /leg = (value of place/time)
i
i
 but competition  cost+ margin pricing
 who can know the value of place?
N: provider
Y: end-users
–  apportionment
 clearing grows comms market
7 Oct 1999
Direction of Value
6
context
pricing
pricing
clearing
scenarios
summary
end to end pricing
data flow
service
price
end-to-end
pricing role
7 Oct 1999
Direction of Value
9
context
pricing
pricing
clearing
scenarios
summary
end-to-end pricing role
 not necessarily a business; a role taken by:
– one ISP
– the customer
– a third party (+ bundling content?)
 but…
...what is the best default apportionment?...
7 Oct 1999
Direction of Value
11
context
pricing
pricing
clearing
scenarios
summary
default value apportionment
 proposal:
– 'sender and receiver both charged'
– slight discrepancy in prices possible
– every leg of every flow is part charged twice
– model self-similar for inter-domain boundaries
7 Oct 1999
Direction of Value
12
context
pricing
pricing
clearing
scenarios
summary
split-edge pricing - per direction
Nd
Ne
Nd
 price in & out

Nb

Wbas
Wabr
Na

Wbar
Wabs
Nc
Nc
7 Oct 1999
Direction of Value

separately
each price
between
boundary and
remote edge
price effects
localised
contracts
localised
extends
edge-pricing
[Shenker96]
13
context
pricing
pricing
clearing
split edge pricing
scenarios
-
summary
per class
 each class
of service
has a
market
 class
mismatch
effects
localised
7 Oct 1999
Direction of Value
14
context
pricing
pricing
clearing
scenarios
split-edge pricing
Nd
Qv
Ne
-
Wbas
Wabr
V Qt
7 Oct 1999
 multicast &
Qw
Qw
Nb
Na
per leg
Nd
Qu
summary
heterogeneous
QoS
Qu
Wbar
Wabs
Qu
Nc
Nc
Direction of Value
15
context
pricing
pricing
clearing
scenarios
summary
default value apportionment
 choose default to minimise clearing
'only senders' or 'only receivers' charged
halve transaction volume
require industry-wide co-operation
unstable - mavericks gain and increase costs of all
multicast requires trusted receiver count
 'sender and receiver both charged'
majority of comms between consenting parties
value, charge and cost congruent
stable against maverick policies
doesn't match blame for transmission...
7 Oct 1999
Direction of Value
17
context
pricing
clearing
scenarios
summary
blame, liability and control
 but…
...sender always to blame for a transmission
 request-reply is irrelevant to network layer
 other confusions clarified:
• value of moving info transitory
• value of moving GBs is often for a few bits
• cost of xmt << cost of targeting what to xmt
7 Oct 1999
Direction of Value
18
context
pricing
clearing
scenarios
summary
dilemma & solution
 'sender and receiver both charged'
vs. 'sender to blame'
 receiver customarily pays
...but...
sender liable
 cf. postage stamp
• sender customarily pays, but receiver liable
7 Oct 1999
Direction of Value
19
context
pricing
clearing
scenarios
summary
clearing across edge providers
third party
service
7
money
3
2
5
46
44
5
51
49
clearing
7 Oct 1999
100
Direction of Value
21
context
pricing
clearing
scenarios
summary
clearing across edge providers
iterative
service
7
money
3
44
46
100
7 Oct 1999
54
44
51
Direction of Value
22
context
pricing
clearing
scenarios
summary
end-to-end model: justification
avoids Int'l Accounting Rate System flaws:
muddling wholesale with clearing
per-flow metering in backbone
trusted end counting for multicast
apportionment needs authentication
therefore unaggregateable
acd+1 prices in system  6e26
d5
a = apportionment
schemes per ISP
 10
7 Oct 1999
Direction of Value
c  20,000 23
context
pricing
clearing
scenarios
summary
end-to-end model: justification II
 localised contract
• jurisdiction clear
• what to meter decided locally
 selective openness of clearing process
ac2 prices problem still exists  4e9
7 Oct 1999
Direction of Value
24
context
pricing
clearing
scenarios
scenarios
summary
scenarios
 see paper for...
 finding an end-to-end price
 sender liable but local payment customary
 inter-domain multicast with heterogeneous
quality of service (QoS)
 phone to Internet gateway (PIG)
 ...ie. per session accounting
7 Oct 1999
Direction of Value
27
context
pricing
clearing
scenarios
scenarios
summary
PIG - phone to Internet gateways
PSTN
service
Internet
money
iterative
end-end
3
1
7
3
2
36
41
100
7 Oct 1999
5
21
5
clearing 59
29
25
24
21
PIG
Direction of Value
28
context
pricing
clearing
scenarios
summary
summary
alternative now seems obvious...
 per-session accounting bill=anachronism
 split-edge pricing scales infinitely
 'sender and receiver both charged' stable
– customary - but only sender liable to pay
 end-to-end pricing and clearing efficient
 end-to-end intermediary could take 0-50%
of retail ISP and telco markets
– ...and their customer relationships
7 Oct 1999
Direction of Value
29
context
pricing
clearing
scenarios
more
summary
info
further information
 Differential charging (diffchar) project
http://www.labs.bt.com/projects/mware/
 Bob Briscoe
http://www.labs.bt.com/people/briscorj/
7 Oct 1999
Direction of Value
30