This book provides a theoretical framework for reasoning about and pricing Internet tiered services, as well as a practical toolset for network providers to develop customized menus of service offerings. Internet service providers (ISPs) have introduced several forms of a tiered service, in which users may select from a small set of tiers that offer progressively higher levels of service with a corresponding increase in price. The material provides a comprehensive study of the design, sizing, pricing, and operation of Internet tiered services. It also addresses the following issues: optimization of service tier selection and sizing, economic models for optimal pricing of service tiers, models for optimizing a oebundles of servicesa, and applications of tiered services in simplifying important QoS functions in the network, including fair packet scheduling.
| Introduction | p. 1 |
| Continuous-Rate Packet-Switched Networks | p. 2 |
| Tiered-Service Networks | p. 3 |
| Multi-Tiered Pricing Schemes | p. 5 |
| Theory | |
| The Directional p-Median Problem: Definition and Applications | p. 9 |
| The p-Median Problem | p. 9 |
| Continuous vs. Discrete Space | p. 10 |
| A New Notion of Distance: The Directional Distance Metric | p. 12 |
| Summary of Complexity Results | p. 14 |
| Applications | p. 15 |
| Bandwidth Tiered Service: Deterministic Demands | p. 19 |
| Bandwidth Tiered Service as a DPM1 Problem | p. 19 |
| A Linear Complexity Algorithm of DPM1 | p. 22 |
| Graph Representation of DPM1 | p. 22 |
| Monge Condition and Totally Monotone Matrices | p. 23 |
| Efficient Dynamic Programming Algorithm for DPM1 | p. 24 |
| Impact of Tiered Service on Network Resources | p. 26 |
| Joint Optimization of the Number and Magnitude of Service Tiers | p. 33 |
| Bandwidth Tiered Service: TDM Emulation | p. 37 |
| TDM Emulation As A Constrained DPM1 Problem | p. 38 |
| Optimal Solution to TDM-DPM1 for Fixed | p. 40 |
| The Behavior Of The TDM-DPM1 Objective Function | p. 41 |
| An Exhaustive Search Algorithm for TDM-DPM1 | p. 42 |
| Optimization Heuristics | p. 44 |
| Performance Evaluation | p. 47 |
| Algorithm Comparison | p. 47 |
| Impact on the Network Provider: Bandwidth Penalty Due to TDM Emulation | p. 49 |
| Impact on Users: Blocking Probability | p. 55 |
| Bandwidth Tiered Service: Stochastic Demands | p. 59 |
| The Stochastic Directional p-Median Problem | p. 60 |
| Optimal Solution Through Nonlinear Programming | p. 62 |
| Example: Solution for the Uniform Demand Distribution | p. 64 |
| Example: Solution for the Increasing Demand Distribution | p. 65 |
| An Efficient Approximate Solution | p. 66 |
| An Approximate Formulation of SDPM1 | p. 66 |
| Optimal Solution to Approximate-SDPM1 | p. 68 |
| Convergence of the Approximate Solution | p. 69 |
| Tiered Structures for Multiple Services | p. 75 |
| The Directional p-Median Problem on the Plane | p. 76 |
| Heuristic Algorithms for Discrete-PM2 | p. 77 |
| Effect of Distance Properties on Computational Effort | p. 78 |
| Teitz and Bart (TB) Vertex Substitution Heuristic | p. 78 |
| The Global/Regional Interchange Algorithm (GRIA) | p. 79 |
| Heuristic Concentration (HC) | p. 81 |
| A Decomposition Heuristic for DPM2 | p. 81 |
| Evaluation of the Decomposition Heuristic | p. 83 |
| The Class of Strictly Dominating Solutions for DPM2 | p. 90 |
| Economics | |
| Economic Model for Bandwidth Tiered Service | p. 97 |
| Pricing of Internet Services | p. 98 |
| The Network Context | p. 99 |
| Economic Model for Sizing of Service Tiers | p. 101 |
| Maximization of Expected Surplus | p. 102 |
| Solution Through Nonlinear Programming | p. 104 |
| An Efficient Approximate Solution | p. 105 |
| Optimizing the Number of Service Tiers | p. 107 |
| Optimal Pricing Based on Nash Bargaining | p. 108 |
| The Single Tier Case | p. 109 |
| The Multiple Tier Case | p. 112 |
| Performance Evaluation | p. 113 |
| Convergence of the Approximate Solution | p. 114 |
| Optimal Sizing of Service Tiers | p. 116 |
| Optimal Pricing of Service Tiers | p. 119 |
| Accounting for the Cost of Service Tiers | p. 122 |
| Service Tiering As A Market Segmentation Strategy | p. 125 |
| Economic Model of User Diversity | p. 125 |
| The Single Tier Case | p. 129 |
| The Multiple Tier Case: Market Segmentation | p. 131 |
| The MAX-S Problem with Fixed Tiers | p. 131 |
| Approximate Solution to the MAX-S Problem | p. 133 |
| Performance Evaluation | p. 134 |
| Convergence of the Approximate Solution | p. 135 |
| Tier Structure Comparison | p. 135 |
| Tiered Service Bundling Under Budget Constraints | p. 141 |
| Economic Model of Service Bundling | p. 142 |
| Approximate Solution to the MAX-ES-2D Problem | p. 145 |
| The Fixed Tier Case | p. 145 |
| Cost Minimization on an Indifference Curve | p. 146 |
| Joint Optimization of Service Tiers and Prices | p. 146 |
| Performance Evaluation | p. 148 |
| Quality of Service (QoS) | |
| Packet Scheduling | p. 155 |
| Scheduling Objectives and Requirements | p. 155 |
| Packet Scheduling Disciplines | p. 157 |
| Timestamp-Based Schedulers | p. 157 |
| Frame-Based Schedulers | p. 163 |
| Hybrid Schedulers | p. 164 |
| Tiered-Service Fair Queueing (TSFQ) | p. 169 |
| Tiered-Service Fair Queueing (TSFQ) | p. 170 |
| Logical Operation | p. 171 |
| Virtual Time Computation | p. 172 |
| Intra-Tier Scheduler: The Fixed-Size Packet Case | p. 173 |
| Queue Structure and Operation | p. 174 |
| Intra-Tier Scheduler: The Variable-Size Packet Case | p. 175 |
| Queue Structure and Operations | p. 176 |
| Packet Sorting Operations | p. 177 |
| Elimination of Packet Sorting Operations | p. 178 |
| Experimental Evaluation of TSFQ | p. 179 |
| Testbed and Experimental Setup | p. 179 |
| Performance Results | p. 181 |
| References | p. 187 |
| Index | p. 193 |
| Table of Contents provided by Ingram. All Rights Reserved. |
ISBN: 9780387097374
ISBN-10: 0387097376
Audience:
Professional
Format:
Hardcover
Language:
English
Number Of Pages: 220
Published: 1st May 2009
Dimensions (cm): 23.5 x 15.5
x 1.9
Weight (kg): 0.449