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Internet Economics
Shi-Chung Chang
Yi-Nung Yang
Lecture #1: Outline
• Today
– Internet Overview
— Internet Background and Organization
— ISP and Services
— Future Trend
– Economic Problems of Internet
— network infrastructure
– congestion, efficient pricing
— content
– intellectual property, pricing information goods,
decency, encryption and transaction security,
– Course Overview
Lecture #1: Outline (Cont)
Reading Assignments
[MaV97] J. K. Mackie-Mason, H. R. Varian, “Economic FAQs about the
Internet” available at < http://www-personal.umich.edu/~jmm/ papers.html>
Yi-Nung Yang, “An Introduction to Network Effects” available at <
http://yaya.it.cycu.edu.tw/online/ch1.htm >
• Next Time
• Basics of economics
– wk4:需求面理論Demand Side
Why Offering at EECS
• User Centered vs Tech. Centered Design
User
Goals
Engineering
Design Goals
System
Design
System
Performance
Tech. Performance loop
User performance loop
User
Statistics
Definition of Internet Economics
• Definition: the Study of the Market for
Internet Services
==> Economics of Transport Aspects
as
Emphasis
• Information and Computing Economy
==> a Larger Scope
What Are Special?
• Zero Marginal Cost
• Unknown User Demands
• Negative and Positive Externalities
==> Tragedy of Commons ?
• Very Fast System Evolution :
Users, Services and Technologies
Economic FAQs about Internet
• Background
–
–
–
–
What is Internet?
Where did it come from?
What do people do on the Internet?
How big is the Internet?
Internet Structure
Sending 48 data bytes to rpcp.mit.edu [18.172.0.244]
1:Rcvd ICMP pkt type 11: [129.2.114.1] ? in 4 msec.
2:Rcvd ICMP pkt type 11: [128.8.1.223] ? in 3 msec.
3:Rcvd ICMP pkt type 11: [206.205.243.1] ? in 14 msec.
4:Rcvd ICMP pkt type 11: [165.117.50.86] ? in 13 msec.
5:Rcvd ICMP pkt type 11: [198.32.186.2] ? in 247 msec.
6:Rcvd ICMP pkt type 11: [4.0.1.93] ? in 27 msec.
7:Rcvd ICMP pkt type 11: [4.0.1.89] ? in 20 msec.
8:Rcvd ICMP pkt type 11: [4.0.2.126] ? in 35 msec.
9:Rcvd ICMP pkt type 11: [4.0.2.34] ? in 35 msec.
10:Rcvd ICMP pkt type 11: [4.0.2.122] ? in 36 msec.
11:Rcvd ICMP pkt type 11: [4.0.2.86] ? in 54 msec.
12:Rcvd ICMP pkt type 11: [199.94.205.102] ? in 42 msec.
13:No packet received from intermediate hop.
14:Rcvd ICMP pkt type 11: [192.233.33.3] ? in 62 msec.
15:Rcvd ICMP pkt type 11: [18.168.0.11] ? in 38 msec.
16:Rcvd ICMP pkt type 0: [18.172.0.244] ?, 48 bytes in 58 msec.
IAP
IAP
LAN
LAN
mss.umd.edu
rpcp.mit.edu
TraceRoute Statistics for rpcp.mit.edu
16 packets transmitted, 15 packets received, 6% packet loss
round-trip (ms) min/avg/max = 3/45/247
For help on packet types, see Help Tab.
WAN - ISP
What Do People Do on Internet?
• Traffic (by Bytes, Sept. 1994)
–
–
–
–
–
–
32% file transfer
13% information discovery (gopher/WWW)
11% Usenet news
10% overhead (IP, DNS)
6% email
5% remote login
Updated Statistics ?? HW1
How Big Is the Internet?
(to be updated)
•
•
•
•
Size: transmission capacity & traffic
U. S. : 60 - 70% of Internet users and host computers
Study long distance instead of local traffic
Distinct Growth Rates
– Interstate voice traffic
– Capacity/traffic of private links
– Capacity/traffic of public Internet
8% (in minute of use)
15-20%
100%
• Factor of distance decreasing in tariffs/costs but increasing with
link capacity
• Local traffic stays significant (social behavior)
• Data overtaking voice in 2002 predicted
D:\Courses\Netnomics\Lecture2\internet_size.ps
(p20-)
Economic FAQs about Internet
• Organization
– Who runs the Internet?
– What is the structure of the Internet?
– What are the backbone networks (in
Taiwan) ?
– What was the NSFNET ( are TANET,
HINET& SEEDNET) ?
– How much did NSFNET (do these nets)
cost?
– Who provides access outside of Taiwan?
Internet Governance
• Standards
– Internet Engineering Task Force (IETF)
– "We reject kings, presidents, and voting. We
believe in rough consensus and running code.” IETF Credo
• Architecture
– 99% distributed (Gillett and Kapor)
– Centralized IP address & Domain names
How Much Did NSFNET Cost?
• $11.5 M/year to Merit/ANS
– 80% as lease payment for lines + routers
– 7% for Network Operations Center
• $7 M/year as subsidies to regionals
• If 10 million US users ==> $2/user-year
Q:Do you want to bill the users?
Services provided by ISP
• Internet access service
– connect service
— dial-up
— leased line
— FramRelay
– E-mail,WWW,FTP,Gopher,Telnet,Archie,IRC(Internet
Relay Chat),Usenet
– Web Hosting,Share Disc
• Other service
–
–
–
–
–
–
Network System Consultant & Project
WWW Setup & Home Page Design
Software Development & Resell
Hardware Resell & Setup
Hardware Rental
Magazine & Media
• provide WAN connection
ISP architecture:
Leased line to other
ISP (Interconnection
agreement)
PPP,SLIP
dial up line
Back-Bone
Shell
account
Router
Leased
line
Mail
Server
LAN
Name
Server
WWW
Server
Proxy
Server
FTP
Server
ISP Back-Bone Architecture
• Back-Bone
– routers connected with one another by private line
– leased line from telephone company
– cost:leased line tariff,routing hardware and soft
ware
WAN Service provide by
telecommunication company
(Carrier Service)
• Point to Point
– Analog phone line
– Digital data service
– Circuit switched
• Multi-point to Multi-point
– Fast Packet Switching
– Frame Relay
– SMDS(Switched Multimegabit Data Service)
– ATM
全國ISP使用人口
• 本次調查,各ISP可承載撥接用戶數總和為
2,531,674人
• 據NII科技專案88年6月調查,台灣地區網路總
用戶為4,020,000人,其中撥接用戶為
2,440,000人
ISP公司服務項目與特色
•
•
•
•
•
•
•
•
全國統一撥接門號9家
電子郵件信箱37家
News25家
網路傳真14家
個人化首頁空間23家
主機代管35家
過濾垃報郵件17家
24小時諮詢13家
32
瑪凱電信
33
福將昌
TANET
29
微傳電訊
GIP
39
震亞國際
Aunet
HKT
41
隨通電訊
14
和信
25
智躍科技
12
年代影視
34
精業
11
吉立通
2
大眾國際
15
易訊
10
仲琦科技
TTN
16
昇源資訊
1
上合資訊
30
新絲路
8
台灣網易
Acer
TIPO
26
華訊網路
36
網達國際
TWIX
3
Hinet
28
鈦格科技
18
金融家
38
Seednet
20
信易通
31
新網資訊
21
南訊企業
40
翰傑科技
35
網宇國際
22
英普達
17
東森
4
元碁資訊
13
協志科技
23
香港電訊
9
立通科技
37
廣通科技
24
悉達資
訊
5
太聯科技
全國ISP
連網架構圖
7
台灣NEC
6
王友科技
27
隆傑資訊
國內ISP對國外連網圖
微傳
瑪凱
年代
英普達
吉利通
大眾
仲琦
長榮
HiNet
王友
SeedNet
香港電
訊
震亞
3條T1
T1 2條T1
南訊
衛星+
6條T1
2條384K
512K
110M
T1
T1
512K
3條T1
T1
DS1
2條T3
台灣
NEC
廣通
T1
3.088M
4條T1
衛星T1
協志
精業
2條512K
512K
512K
T1
T1
2.048M
10.256M
2.048M
T1
USA
512K
法國
T1
澳洲
T1
T1
384K
荷蘭
英國
T1
T1
2.56M
1.544M
香港
新加坡
T3
泰國
中國
日本
韓國
日本NEC
製作者:王仁昌
國外聯網頻寬
2%
2%
1%
1% 1% 1%
1%
2%
2%
中華電信
數位聯合電信
年代影視事業網路事業部
2%
協志科技
43%
12%
和信超媒體
英普達資訊科技
香港商香港電訊
廣通科技
仲琦科技
大眾國際電信加值網路服務
吉立通電訊網路
南訊企業
30%
其它各家ISP總和
服務品質目標
• ISP公司一般資料
– 服務品質目標:封包遺失率、封包來回時間、撥接
成功率及其他
– proxy容量
• 例子
服務品質目標
公司名稱
中華電信
Hinet
Proxy 容量
400GB 頻寬流
量 40Mbps
封包遺失率
封包來回傳送時間
國內
國外
國內
國外
≦5%
≦10%
≦15ms
≦250ms
撥接費率
• 撥接費率試算
– 輕量級用戶,中量級用戶,重量級用戶
– 用量:每月10小時,20小時,60小時
• 觀察
– 各ISP收費標準差距頗大
– 較小型ISP有多家提出不限時數方案以吸引顧客,
可能不敷成本,或服務品質無保障
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