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Journal of Network and Systems Management
Published in: Journal of Network and Systems Management 2/2006

01-06-2006

A Novel Approach to Charge for IP Services with QoS Support

Authors: Dario Di Sorte, Mauro Femminella, Gianluca Reali

Published in: Journal of Network and Systems Management | Issue 2/2006

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Abstract

If the Internet is to become a network supporting differentiated application and transfer services, advanced architectures must be deployed to efficiently support hard Quality of Service (QoS) and usage-based charging. In this paper we present a novel pricing scheme for IP services with guaranteed quality. Our approach is built on the basis of the virtual delay, which is a novel, simple and effective QoS index that describes an advanced IP service. We propose a model to compute the virtual delay from a purely technical point of view, taking into account not only guaranteed performance, but also traffic and system parameters. We then analyze the sensitivity of both the virtual delay and the tariff towards the involved parameters, taking into account both the users’ benefit and the operators’ income. We also extend the pricing model to make it dependent on service demand. Finally, we also present an economic analysis, the aim of which is to establish a model to set the QoS level and the relevant price, taking into account revenue, social fairness, and service availability.
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Appendix
Available only for authorised users
Footnotes
1
We are aware that a traffic flow may pass through a number of different domains and a model to build the end-to-end tariff is needed. A number of models have been presented in literature: the edge pricing model [19], RNAP protocol [20], and brokering-based procedures [16, 17, 21]. Also, issues relevant to QoS-and-price based inter-domain routing are very challenging [17, 21, 22]. In this regard, the virtual delay could also be the basis of minimum price inter-domain routing algorithms [17, 21], and it should be a standard (and not proprietary) measure of the QoS level of a service transmission, since the perspective is moved from a local intra-domain to an inter-domain scope. However, these aspects are beyond the scope of this work, in which we propose and analyze a model to compute the virtual delay commencing with per domain technical issues.
 
2
Congestion pricing is commonly adopted in literature to charge for elastic applications (e.g., see [40, 41]), and it is a very effective tool to control network congestion [42]. In response to price variations, users adapt their sending rates with the aim of maximizing their utility, so that a efficient, fair sharing of network resources is reached. In addition, congestion pricing can be applied on both a per-packet and per-call basis, and therefore the tariff applied to deliver a packet or to support a call may be strongly dynamic, even throughout the call itself. Thus, users have to be continuously informed about the price charged by the network according to the degree of congestion encountered by the packets along the path, in order to be able to react to price changes and to possibly renegotiate the QoS level and the tariff. A simpler application of congestion pricing is the well-known time of day pricing. Studies of its effectiveness can be found in [43, 44].
 
3
In accordance with [2], we consider tariffs to be socially fair if access to the network is not determined by users’ wealth.
 
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Metadata
Title
A Novel Approach to Charge for IP Services with QoS Support
Authors
Dario Di Sorte
Mauro Femminella
Gianluca Reali
Publication date
01-06-2006
Publisher
Springer US
Published in
Journal of Network and Systems Management / Issue 2/2006
Print ISSN: 1064-7570
Electronic ISSN: 1573-7705
DOI
https://doi.org/10.1007/s10922-006-9030-0

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