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  1. Controlling Internet Quality with Price Market Managed Multiservice Internet Bob Briscoe BT Research, Edge Lab, University College London & M3I Technical Director Funded by IST Project No 11429 under the EU Vth Framework Information Society Technologies Programme

  2. end-to-end principle • change is the only constant • for application flexibility in general purpose systems (e.g. Internet) • lower layers: extremely general capabilities • move specific capabilities up and out • define “specific” and “general”? • 1973: connection too specific for network  synthesise at ends • 1993: Web: IP  ATM  • 1999: pricing and charging: definitely too specific for IP • 2001:quality of the service (QoS)itself...? • 2005?, 2020? Controlling Internet Quality with Price

  3. not to be confused with... • end-to-end QoS means... • QoS created by the ends • not just QoS everywhere along the path • integrated services (intserv), • differentiated services (diffserv) • ECN... QoS QoS QoS QoS QoS Controlling Internet Quality with Price

  4. ECN? • explicit congestion notification • per packet QoS • what? • new single bit in IP packet header • IETF Proposed Standard (imminent) • how? • middle • congested routers randomly mark packets (rather than drop) • more congestion  more marks • ends • more marks  slower rate or... Controlling Internet Quality with Price

  5. trust? • end-to-end principle • implies trust the ends to co-operate • but if ends control their own QoS • incentive required... • ...price per congestion mark • more marks  slower rate or... ...same rate at higher cost • choice  customer control Controlling Internet Quality with Price

  6. congestion avoidance pricing • economically optimal • ends: correct incentives • middle: revenue naturally fills capacity shortages • but… • …can we synthesise flexible commercial models?...…that fit all the desires of providers and customers? • …is it practical? • ...even if it is, will network operators offer it? • prediction: Yes, but only once Balkanisation of the Internet has failed (2006?) Controlling Internet Quality with Price

  7. dynamicprice handler agent dynamic stable app1 network provider customer2 network provider customer1 minimise then synthesise packet QoS  session QoS dynamic stable risk broker customer2 customer1 network provider network provider offer session QoSrequest Controlling Internet Quality with Price

  8. minimise then synthesise half circuit QoS  end-to-end QoS application service offer clearing house network provider customer2 customer1 network provider network provider Controlling Internet Quality with Price

  9. offer D customer Market mechanism VISP offer B offer C customer customer network offer A Virtual ISP offer E providers end system end system end system what do I need? Multiservice Internet ECN diffserv ECN+diffserv intserv ECN Controlling Internet Quality with Price

  10. market mechanism at each customer/provider interface offer pricereaction pricesetting accounting customer service load Controlling Internet Quality with Price

  11. implications • network operators sell basic network service • customer creates quality! • limited market differentiation for networks... • ...operators or suppliers • network operators must differentiate with: • end software add-ons • tariff flexibility Controlling Internet Quality with Price

  12. summary • end-to-end principle • the dumber the network the more valuable it is • quality of a service implemented by its customers!? • supply chain implications • minimise then synthesise • business models • engineering • a Market Managed Multi-service Internet • not just supporting the information economy... • ...but the economy within information Controlling Internet Quality with Price

  13. more info • M3I project • Jan 2000 - Dec 2001 • contacts, background and first deliverables: • http://www.m3i.org/ • Bob Briscoe: • http://www.labs.bt.com/people/briscorj/ Controlling Internet Quality with Price

  14. spare slides M3I

  15. resource allocation (slow) charging policy policy management resource congestion (fast) dynamic pricing admission ctrl context Multiservice Internet demanding applications QoS mechanisms over-provision Market Managed Controlling Internet Quality with Price

  16. implications- commercial and social — cost of QoS & charging mechanisms QoS mechanisms over-provision unfair fair but high barrier to entry charging policy ‘fair by decree’ ‘market fairness’ dynamic pricing admission ctrl ‘market fairness’ first come first served Controlling Internet Quality with Price