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Keynote Talk: Internet Charging
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Keynote Talk: Internet Charging
Andrew M. Odlyzko7 
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AT&T Labs - Research, 180 Park Ave., Bldg.103, P. O. Box 971 Florham Park, NJ, 07932-0971, USA |
Abstract
Price and quality differentiation are valuable tools that can provide higher revenues and increase utilization efficiency
of a network, and thus in general increase social welfare. Such measures, most notice- able in airline pricing, are spreading
to many services and products, es- pecially high-tech ones. However, it is questionable whether they should or ever will be
used widely in Internet transport. The main application of QoS techniques, if any, is likely to be in access links, either
because resource constraints create an especially strong case for them (as may be true in some wireless connections), or for
price discrimination purposes. However, in the photonic back-bones of the Internet it is best to provide uniformly high quality
through low utilization. The main problem with most QoS techniques is that they require sub- stantial in-volvement of the
end users. When one considers the costs of the entire system, the seeming inefficiency of lightly utilized backbones pales
next to the savings in engineering and operations of the rest of the information processing system (which includes far more
than just the network). This argument is supported by historical evidence. The trend in a variety of communication services
has been to pay more attention to user preferences and less to network efficiency as the service evolved. An additional factor
that militates against QoS is that user utility is de- rived primarily from low transaction latency. That is what leads to
low utilization, and makes most QoS techniques irrelevant.
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