1. The Evolution of Business Models in the Internet:Sending
Party Network Pays as the basis for quality ofservice (QoS) support
in the Internet.SESERV Future Internet Workshop, Athens, January
31st, 2012.Dr. Falk von Bornstaedt, Deutsche Telekom, International
Carriers Sales andSolutions (ICSS). 2.11.2011 1
2. Title. Subtitle.I pay 13for WLAN in the hotel and get only
2MByte in 40 minutes 2 w z f v b
3. So I watch thecity panorama.No QoS either - only fog! 3
4. In air travel, we arespending 1000s of to get better
quality. 4
5. But we do not have asimilar option for the Internet! 5
6. Thats how we like it: NO CONGESTION! 6
7. But the reality is often more like this!Solution? Add some
lanes! 7
8. Well, are you surethat many lanes will indeed solve the
problem? 8 wzfvb
9. Table of Contents A Story from the 19th Century Business
Models in the IP Interconnection Market The Revenue Model
Definition of the Sending Party Network Pays Principle A first step
towards End-to-End Quality of Service Why no QoS without the
Sending Party Network Pays Principle Business Model Innovation /
Sending Party Network Pays 9 b v f z w
10. A Story from the 19th Century May 1st 1840 the One Penny
Black was issued One of the first Sending Party Pays Principles in
the world was introduced Source: Wikipedia Business Model
Innovation / Sending Party Network Pays 10 b v f z w
11. Typical Traffic Exchange between two NSPs Content Eyeball
(End user) A1 B1 Request of Content B2 A2 NSP A NSP B Delivery of
Content A3 B3 Business Model Innovation / Sending Party Network
Pays 11 b v f z w
12. Input/Output Business Model Transformation Input Process
Output External Resources Goods or Services Company internal Value
Chain Universal Connectivity Connectivity c o s t s id e o f t h e
s ourc e s of c ompa ny re ve nueSource: Own creation, after
Chesbrough, H. et al. (2002), p. 532; Pecha, R. (2004), p. 15;
Wirtz, B.W. (2000), p. 629. Business Model Innovation / Sending
Party Network Pays 12 b v f z w
13. Value Proposition / Revenue Model Business Model Business
Model Architecture Value of Value Revenue Proposition Creation
Model e.g. Universal e.g. Sending Party Connectivity (with Network
Pays ensured SLA) Value ChainSource: Own creation, after Sthler, P.
(2001), pp. 41. Business Model Innovation / Sending Party Network
Pays 13 b v f z w
14. Sending Party Network Pays Principle Adresses the question
of who pays for the transport of traffic over an interconnection
Should always be the sending side network when two NSPs are
involved. The Revenue Model behind the previous described Business
Model The Business Model of IP Interconnection on a Wholesale Level
S e n d in g P a r t y N e t w o r k P a y s P r in c ip le
Point(s) of Interconnection A1 B1 IP Packets NSP A2 NSP A B2 B
Money A3 B3Source: Own creation, after Sthler, P. (2001), pp. 41.
Business Model Innovation / Sending Party Network Pays 14 b v f z
w
15. Sending Party Network Pays Principle Why no End-to-End QoS
without SPNP? Only the sender is in the position to decide which IP
packets need premium quality (i.e. marking the IP Packet with the
express tag) To inform the receiver that this packet needs special
care The Idea of the SPNP is inspired by other industries, e.g.
parcel or mail services Receiving party would not be interested in
paying for QoS IP Traffic which then also has to be forwarded
within their network The SPNP model does not address all the issues
challenging the internet but contributes to enhance the eco-system.
The Model just applies to the wholesale IP Interconnection Business
Does not address how the traffic receivers actually pay for the
content they receive. Business Model Innovation / Sending Party
Network Pays 15 b v f z w
16. Sending Party Network Pays Principlee n t S it u a t io n B
e s t E f f o r t Content-/ Application financed by the end
customer Content-/ Application Provider Best Effort Flatrate
Content-/ Application financed by the Eyebal Advertising l ISP
Industry Best Effort Transit Best Effort Transit Provider Peering
or Transit Interconnection IP Transport with Best Effort NSP Best
Effort NSP Client Source: After Brenner, W. et al. (2008), p. 270;
Zarnekow, R. et al. (2008), p. 1064. Business Model Innovation /
Sending Party Network Pays 16 b v f z w
17. Sending Party Network Pays Principlee F u t u r e w it h Q
o S Content-/ Application financed by the end customer Content-/
Application Provider Best Effort Flatrate Content-/ Application
financed by the Eyebal Advertising l ISP Industry Best Effort
Transit Best Effort Transit Provider Peering or Transit
Interconnection NSP Best Effort NSP ClientSource: After Brenner, W.
et al. (2008), p. 270; Zarnekow, R. et al. (2008), p. 1064.
Business Model Innovation / Sending Party Network Pays 17 b v f z
w
18. Sending Party Network Pays Principlee F u t u r e w it h Q
o S Content-/ Application financed by the end customer Content-/
Application Provider Best Effort Flatrate Content-/ Application
Eyeba financed by the ll ISP Advertising Industry QoS Transit QoS
Best Effort Transit Transit Peering or Transit Interconnection
Provider QoS Interconnection IP Transport with QoS NSP NSP Best
Effort ClientSource: After Brenner, W. et al. (2008), p. 270;
Zarnekow, R. et al. (2008), p. 1064. Business Model Innovation /
Sending Party Network Pays 18 b v f z w
19. Sending Party Network Pays PrincipleWhy no End-to-End QoS
without SPNP? Consider a Receiving-Party-Network-Pays-Model in the
Internet for a Moment: Incentives to send many packets in high
quality classes and to generate revenues These out payments of the
ISP would be invoiced to the ISPs customer The customer would
refuse this, if he receives undesired IP packets (e.g. spam) RPNP
would even enlarge fraud and spam problems RPNP would be more
complex than SPNP from a business process, IT systems and legal
point of view Business Model Innovation / Sending Party Network
Pays 19 b v f z w
20. The Sending Party Network Pays Principle Sending Party
Network Pays is the Future Jan 31st, 2012 20 b v f z w