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How to provide Quality of Service guarantees in the Internet? Lessons learnt from the airline and card-based payment sectors

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  • M'Chirgui, Zouhaïer
  • Pénard, Thierry

Abstract

Summary The increasing demand for real-time applications (video conferencing, Internet telephony--VoIP--etc.) delivered over Internet networks requires stringent Quality of Service (QoS) guarantees. Internet traffic routing based on a Best-effort basis can hardly support these QoS requirements. This article argues that Internet services providers should form strategic alliances to coordinate their investments in a new-generation infrastructure that could provide innovative services with QoS guarantees. This is supported by a topological analysis of the interconnection agreements among top-level Internet providers and by the lessons derived from alliances forged in the airline and card-based payment sectors. We conclude that on the Internet, the optimal organizational form should be a centralized alliance with a hub-and-spoke network structure.

Suggested Citation

  • M'Chirgui, Zouhaïer & Pénard, Thierry, 2011. "How to provide Quality of Service guarantees in the Internet? Lessons learnt from the airline and card-based payment sectors," European Management Journal, Elsevier, vol. 29(4), pages 306-318, August.
    • Handle: RePEc:eee:eurman:v:29:y:2011:i:4:p:306-318
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    Cited by:

    1. D’Ignazio, Alessio & Giovannetti, Emanuele, 2014. "Continental differences in the clusters of integration: Empirical evidence from the digital commodities global supply chain networks," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 486-497.

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