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Interaction of ISPs: Distributed Resource Allocation and Revenue Maximization

Interaction of ISPs: Distributed Resource Allocation and Revenue Maximization. Sam C.M. Lee, Joe W.J. Jiang, John C.S. Lui The Chinese University of Hong Kong. Tier-1 ISP. Tier-2 ISP. Local ISP. Peering link. ISP. Tier-2 ISP. Peer. Local ISP. Peering link. ISP link. Peer. Peer. ISP.

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Interaction of ISPs: Distributed Resource Allocation and Revenue Maximization

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  1. Interaction of ISPs: Distributed Resource Allocation and Revenue Maximization Sam C.M. Lee, Joe W.J. Jiang, John C.S. Lui The Chinese University of Hong Kong

  2. Tier-1 ISP Tier-2 ISP Local ISP Peering link

  3. ISP Tier-2 ISP Peer Local ISP Peering link ISP link Peer Peer ISP Peer Peer Peer

  4. Optimization problem of peers Tier-2 ISP (ISP) Peer i Issues to consider: 1. performance of the link 2. charge of the link Peer j Peer k

  5. Optimization problem of peers Happiness obtained from sending traffic to peers Delay cost in ISP link Payment to ISP Delay costs in peering links Payments to peers

  6. Constraints of peers 1. 2. 3. 4.

  7. Solution to the peers • Objective function is strictly concave in every transmission rate • The optimal transmission rates and maximum utility are unique and can be found by Lagrangian method

  8. Resource distribution • How to determine the capacity for the peers • Maximization of revenue • How to determine the optimal value of unit price Problems for an ISP

  9. Information exchange framework Next period Bandwidth allocation ISP Bid peer Compute resource distribution Compute optimal rates

  10. ISP 1: Resource distribution ISP Bandwidth = 600MBps ? ? ? peer1 peer2 peer3 Bid = 150MBps Bid = 100MBps Bid = 50MBps

  11. Proportional share algorithm ISP Bandwidth = 600MBps 100MBps 200MBps 300MBps peer1 peer2 peer3 Bid = 150MBps Bid = 100MBps Bid = 50MBps

  12. Equal share algorithm ISP Bandwidth = 600MBps 150MBps 200MBps 250MBps peer1 peer2 peer3 Bid = 150MBps Bid = 100MBps Bid = 50MBps

  13. Simulations • When the happiness coefficients of peers are low PSA ESA

  14. When the happiness coefficients of peers are high PSA ESA

  15. ISP 2: Maximization of Revenue Total revenue from the peers Demand by peer i Unit price Determine the optimal price

  16. Solution: Maximization of revenue • Estimate the aggregate traffic ( ) from all • peers in term of the price (P)

  17. Conclusions • Utility maximization of a peer • Resource distribution of ISP • Revenue maximization of ISP

  18. Q & A

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