Proposal of a Price-Based Inter-AS Policy Routing to Improve ASes' Profits

Nagao OGINO  Masatoshi SUZUKI  

IEICE TRANSACTIONS on Communications   Vol.E85-B   No.1   pp.137-146
Publication Date: 2002/01/01
Online ISSN: 
Print ISSN: 0916-8516
Type of Manuscript: Special Section PAPER (Special Issue on Internet Technology II -- Traffic Control and Performance Evaluation in the Internet)
routing policy,  inter-AS routing,  pricing scheme,  economic efficiency,  Markov decision theory,  

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At present, the global Internet consists of many ASes. Each AS pays a pre-determined connection fee to another AS for connecting its network with that AS's network. The connection fee type charging may be rational in case of transferring the best-effort type traffic. However, usage charging is necessary to transferring the resource guaranteed type traffic such as the Intserv traffic and the Diffserv traffic. In this case, each AS pays a per-flow fee to another AS every time it routes a flow into another AS. The per-flow fee paid by each AS becomes a part of the cost for that AS. Thus, each AS needs to select a route with the lowest price to improve its own profit. In this paper, we call such an inter-AS routing scheme a price-based inter-AS routing scheme. When each AS has a request to route an inter-AS flow, it can select an inter-AS route with the lowest price to improve its own profit by this routing scheme. Cost-dependent pricing scheme is suitable for the price-based inter-AS routing scheme because it can reduce frequency of price information exchange between ASes. However, in the cost-dependent pricing scheme, profit in each AS depends on the distribution of path costs in that AS. Generally, ASes with narrow ranges of path costs cannot obtain sufficient profits compared to ASes with wide ranges of path costs. Thus, we propose a routing policy for ASes with narrow ranges of path costs to improve their profits efficiently and evaluate its effect using a simple routing model.