Title: | Network Neutrality and Congestion Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation |
Authors: | Kramer, Jan - Karlsruhe Institute of Technology Wiewiorra, Lukas - Karlsruhe Institute of Technology |
Keywords: | Telecommunications, Net Neutrality, Quality of Service, Innovation, Investment, Regulation |
Issue Date: | 2010 |
Series/Report no.: | Net Institute Working Paper;10-09 |
Abstract: | We consider a two-sided market model with a monopolistic Internet Service Provider (ISP), network congestion sensitive content providers (CPs), and Internet customers in order to study the impact of Quality- of-Service (QoS) tiering on service innovation, broadband investments, and welfare in comparison to network neutrality. We find that QoS tiering is the more efficient regime in the short-run. However it does not promote entry by new, congestion sensitive CPs, because the ISP can expropriate much of the CPs' surplus. In the long-run, QoS tiering may lead to more or less broadband capacity and welfare, depending on the competition-elasticity of CPs' revenues. |
URI: | http://hdl.handle.net/2451/29867 |
Appears in Collections: | NET Institute Working Papers Series |
Files in This Item:
File | Description | Size | Format | |
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Kramer_Wiewiorra_10-09.pdf | Kramer_Wiewiorra_10-09 | 587.83 kB | Adobe PDF | View/Open |
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