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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