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. Jun 2001Controlling Internet Quality with Price 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?

3. Jun 2001Controlling Internet Quality with Price 3 not to be confused with... end-to-end QoS means... 4QoS created by the ends 8not just QoS everywhere along the path 8integrated services (intserv), 8differentiated services (diffserv) 4ECN... QoS

4. Jun 2001Controlling 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...

5. Jun 2001Controlling 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

6. Jun 2001Controlling 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?)

7. Jun 2001Controlling Internet Quality with Price 7 minimise then synthesise customer 1 network provider risk broker customer 2 network provider dynamic stable app 1 network provider dynamic price handler agent network provider dynamic stable customer 2 customer 1 offer session QoS request packet QoS  session QoS

8. Jun 2001Controlling Internet Quality with Price 8 application service minimise then synthesise customer 1 network provider clearing house customer 2 network provider network provider offer half circuit QoS  end-to-end QoS

9. Jun 2001Controlling Internet Quality with Price 9 Multiservice Internet what do I need? ECN+diffserv diffserv ECN intserv ECN Market mechanism network provider s Virtual ISP VISP end system customer offer B offer C offer A offer E offer D

10. Jun 2001Controlling Internet Quality with Price 10 accounting market mechanism customer service price setting price reaction offer load at each customer/provider interface

11. Jun 2001Controlling 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

12. Jun 2001Controlling 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

13. Jun 2001Controlling 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/

15. spare slides M3I

16. Jun 2001Controlling Internet Quality with Price 16 context demanding applications over-provision QoS mechanisms resource allocation (slow) policy charging resource congestion (fast) admission ctrl dynamic pricing policy management Market Managed Multiservice Internet

17. Jun 2001Controlling Internet Quality with Price 17 implications - commercial and social over-provision QoS mechanisms policy charging admission ctrl dynamic pricing fair but high barrier to entry ‘fair by decree’ unfair ‘market fairness’ first come first served — cost of QoS & charging mechanisms