TERENA Networking Conference 2000    

Pricing Networks

Dai Davies, DANTE

"Pricing Networks" is a black art even when the network technology provides management support. "Pricing Networks" is an even blacker art when the underlying technology is IP.

There is a simple definition of a price, namely "what the buyer is prepared to pay for something". This simple definition hides a number of practical points. It hides the quality of what is being bought. It hides the time factor associated with the purchase. In the early days of the Internet, particularly if you lived in the USA, the statement "the Internet is so nice somebody else pays for it" had a real meaning. Nowadays, there are many commercial distortions in the Internet. The sheer scale of activity and the economic importance of networking is leading to an approach to "Pricing Networks" based much more on pricing reality rather than arm waving.

"Pricing Networks" deals with the underlying cost, economic and political issues associated with the cost sharing of research networks in Europe. This is based on the experience of organising cost sharing for a number of generations of European research networks and relates the issues of underlying costs to the practical realities of pricing networking services.

Full Paper PDF (50KB) - Slides (295 KB)



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