A Study on Settlements in Internet Interconnection under Internet Congestion

네트워크 혼잡효과를 고려한 인터넷망간 상호정산 방안 연구

The present paper investigates the technological and conceptional characteristics of peering and transit in internet interconnection. Especially, the market with two ISP competing for customers is modeled and the outcome with peering is compared with transit. This paper also analyze the congestion effects on retail price and network capacity. When there is congestion effects occurring from network sharing, the retail price is increased and the fixed fee is decreased with the degree of congestion. Finally, the optimal access charge assuring the socially optimal retail price and network capacity is derived.