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Side Payments as Barriers to Entry in Non-Neutral Networks

Bruno Tuffin 1, *
* Corresponding author
1 DIONYSOS - Dependability Interoperability and perfOrmance aNalYsiS Of networkS
Inria Rennes – Bretagne Atlantique , IRISA-D2 - RÉSEAUX, TÉLÉCOMMUNICATION ET SERVICES
Abstract : In the network neutrality debate, content providers fight against side payments imposed by ISPs, arguing that it could slow down innovation. But at the same time some big providers actually pay those fees while still officially in favor of neutrality. To better understand this strategical behavior, this paper proposes a simple model providing some insight on whether or not paying side payments for an incumbent provider is a way to create barriers to entry for competitors. It also investigates the economic consequences on all actors: incumbent and new entrant content providers, users, and the ISP. We then describe how the side payment can be determined as a Nash bargaining solution.
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https://hal.inria.fr/hal-01149214
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Submitted on : Tuesday, September 8, 2015 - 9:28:44 PM
Last modification on : Thursday, January 7, 2021 - 4:11:27 PM
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  • HAL Id : hal-01149214, version 2

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Bruno Tuffin. Side Payments as Barriers to Entry in Non-Neutral Networks. 12th Conference of Telecommunication, Media and Internet Techno-Economics (CTTE), Nov 2015, Munich, Germany. ⟨hal-01149214v2⟩

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