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http://hdl.handle.net/2451/28393
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| Title: | Effects of ISP Interconnection Agreements on Internet Competition: The
Case of the Network Access Point as a Cooperative Agreement for Internet
Traffic Exchange |
| Authors: | Beltran, Fernando - Universidad de Los Andes |
| Keywords: | Interconnection, Internet, Network access |
| Issue Date: | 1-Jan-2003 |
| Series/Report no.: | NET Institute Working Paper;03-01 |
| Abstract: | This paper presents and analyzes the main aspects of the historical
development and the current issues at stake in the South American
Internet access market. We have studied the interconnection schemes for
the exchange of local and regional traffic in the South American region,
trying to identify the main incentives large ISPs have for improving the
financial conditions under which interconnection agreements occur,
usually at the expense of smaller ISPs. In fact, the model of
cooperative agreement for the exchange of domestic (national) traffic
has been adopted all through the region; the Internet access market has
benefited from the cost reduction and the improvement in the quality of
service that the operation of a NAP has brought in each country. We have
also contacted representatives of the cooperative exchange points (also
called Network Access Points or NAPs) at Latin American NAPs Second
Meeting in Buenos Aires, Argentina. The most important achievement of
this work is the understanding of the basics upon which the stability of
the exchange points is founded. This is especially critical for the
growth of Internet in South America. We have identified come crucial
aspects such as the characteristics of the interconnection agreements
and the payments ISPs make to the NAP administration. We have
developed a sufficiently detailed understanding of important issues such
as the impact of new forms of interconnection such as secondary peering
agreements and multi-homing on the stability of Internet growth in the
context of the fast developing and ever more complex South American
Internet access markets. We have collected information on the structure
of exchange points in different countries in the region to study the
ISPs patterns of behavior arising from the new interconnection
agreements, in particular, and the changes in the traditional hierarchy
induced by new contract forms, in general. Such agreements are
essentially bilateral agreements at the exchanges, a relatively new
feature in South and Central America. For that purpose we have developed
theoretical models using bargaining theory and have also dealt with cost
allocation problems at cooperative exchange points. |
| URI: | http://hdl.handle.net/2451/28393 |
| Appears in Collections: | NET Institute Working Papers Series
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