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Formulating Taiwan¡¦s Internet IP Peering Mechanism from Two-Sided Market Perspectives

We propose that the industry structure in Taiwan broadband market is a two-sided market. In this framework, the networks need to be completely interconnected in order to ensure unhindered (or smoothly) information flow. Based on a two-sided market model, we analyze the IP peering mechanism for Taiwan Internet market. We show that the IP peering access charges should be a very low constant amount to reflect the unique Taiwan broadband industry structure. Furthermore, in attracting more Internet content providers (ICP) and end users to provide more content services and Internet applications, the Internet service providers (ISP) should provide free broadband services to ICPs. Though these results are contradictory with the ¡§user-pays¡¨ principle, it ensures more profitable for ISPs and ICPs. Most importantly, the impacts on the whole social welfare are improved. Last, we examine a more efficacious framework for ensuring network neutrality is Efficient Component Pricing Rule (ECPR) in a vertically-integrated monopoly market, as in Taiwan Broadband industry.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0210110-161723
Date10 February 2010
CreatorsTai, Tzu-cheng
ContributorsChun-Chieh Wang, Diana HweiAn Tsai, Chun-Hsiung Liao, Shih-Jye Wu, Shih-Jye Wu, Shih-Jye Wu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0210110-161723
Rightsnot_available, Copyright information available at source archive

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