Network neutrality

14
IP traffic explosion and network neutrality Toshiya Jitsuzumi, Dr. Kyushu University

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Transcript of Network neutrality

Page 1: Network neutrality

IP traffic explosion and network neutralityToshiya Jitsuzumi, Dr.

Kyushu University

Page 2: Network neutrality

Moore’s Lawa long-term trend in the history of computing hardware

• Over the history of computing hardware, the number of transistors on integrated circuits doubles approximately every two years.

• The period often quoted as "18 months" is due to Intel executive David House.

• This trend has continued for more than half a century. Sources in 2005 expected it to continue until at least 2015 or 2020. (wikipedia) Intel co-founder Gordon E. Moore

Page 3: Network neutrality

Increased traffic in the network

~1

~3

~5

~7

~9

~11

~13

~15

~17

~19

~21

~23

0

200

400

600

800

1,000

1,200 Nov. 2011

Nov. 2010

Nov. 2009

Nov. 2008

Nov. 2007

Gbps

Source: MIC (2012)

Page 5: Network neutrality

Degraded QoS

Japan (Nov. 2009)

Japan (Jan. 2011)

Japan (Mar.-Apr. 2012)

US (2009, average)

US (2009. median)

UK (May 2010)

Australia (2008Q4)

Ireland (2008)

0% 10% 20% 30% 40% 50% 60% 70%

25.6%

27.2%

24.0%

51.2%

44.3%

46.0%

65.5%

60.2%

Source: Jitsuzumi (2013), FCC ( 2010 ) , Ofcom ( 2010 ) , and Epitiro ( 2009a, 2009b )

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Basis of the problem

Rich contents and applications

Super fast access network

Powerful terminal equipment

ISPs’ core networkInternet backbones

Powerful servers

Page 7: Network neutrality

Framework of the NN problem

Congestion control

Build an optimal capacity

Monopoly leverage

Short-term solution

Long-term solution

How to balance efficiency and equality?

How to determine the capacity?How to finance the investment?

Low barrier to entry

Unique business practices

Natural monopoly

High barriers to entry

Monopoly leverage

How to discipline the market power of network operators?

How to restrain the ISPs with market dominance?

Internet Service Provider

Network Operator

End users

Content Provider

Application Provider

Page 8: Network neutrality

Before introducing NN rules…

http://communities.vmware.com/servlet/JiveServlet/downloadImage/38-17661-25817/bigstock-Competition-concept-5232812.jpg

Any competitive equilibrium or Walrasian equilibrium leads to a Pareto efficient allocation of resources.

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Status quo of the ISP market 1

BB access line wholesale market

BB access market

BB ISP market

NTT-east/west

AccessWholesaler

ISP

Service-based

Operators

Facility-basedOperators

NTT-east/west

Structural Separation

Local Loop Unbundling(dark fiber, dry copper, and line-sharing)

ISP

Facility-basedOperators

(telco)

Service-based

Operators

ISP

Facility-basedOperators(cables)

ISP

Local Loop Unbundling (dry copper)

U.S.Japan

Page 10: Network neutrality

78.6%

49.1%

29.1%

13.5%

5.8%

3.8%

0% 20% 40% 60% 80% 100%

Estimated market share

NTT group Power company Cables

Other telcos Municipalities Others

BB access line wholesale market

BB access market

BB ISP market

NTT Group

Powercos

Other telcos

Cablecos

Others

Municipalities

Estimated market share in Japan

43.6%

36.7%

36.3%

53.9%

53.9%

44.2%

0% 20% 40% 60% 80% 100%

Estimated market share

RBOC Cables Others

Estimated market share in the US

RBOCs Cablecos

Others

Status quo of the ISP market 2

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Status quo of the ISP market 3

NTT-ISP2050.0yen

Telco-ISP3683.0yen

Vender ISP

3427.7yen

3192.7yen

Cable ISP

4186.5yen

2088.4yen

1752.3yen

1314.1yen

4627.6yen

3096.9yen

3535.8yen

2589.4yen

5009.6yen

4469.5yen

2311.8yen

3245.1yen

2874.2yen

3667.1yen

4050.9yen3067.3yen

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Obstacles against the competitive solution 1

• Supply side• No ISP can control the end-to-end QoE.• Positive externality of individual ISP’s effort

• No central authority in the Internet backbone• No bilateral contractual obligation in interconnection• Impact of dynamic routing technology

Local ISP

Content Server

ISP

ISPISP

ISPISPISP

ISP

ISP

The Internet

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• Lack of market discipline from the consumer side• Insufficient QoE literacy among end users

0% 20% 40% 60% 80%

FTTH, single home

FTTH, apartment

cable, over 100 Mbps

cable, 35-100 Mbps

cable, 20-35 Mbps

cable, up to 20 Mbps

ADSL, over 35 Mbps

ADSL, 20-35 Mbps

ADSL, up to 20 Mbps

average

Download %

self-estimation

As of Dec. 2010

Obstacles against the competitive solution 2

Page 14: Network neutrality

For “effective” competition

http://web.securityinnovation.com/Portals/49125/images/Disclosure.jpg

Advertised speedPrice

+Maximum speed achieved

Average speed Jitters

LatencyPacket lossDown time

ISP ranking