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Pricing Internet services: after flat rate

Author

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  • McKnight, Lee W.
  • Boroumand, Jahangir

Abstract

Because of the Internet's benefits of interoperability, statistical sharing, and (usually) positive network externalities, providers of new applications and services will attempt to create new markets for their services through the Internet, even if the underlying technical architecture of the Internet is not intrinsically designed to support such services. This article unravels the strands of economic and network theory and business practice to place new Internet standards such as Diffserv, Intserv, and RSVP, and associated new service pricing models in perspective. This article explains how the next generation Internet may work economically, and what the business strategy and policy implications may be of these changes in the Internet's architecture and infrastructure.

Suggested Citation

  • McKnight, Lee W. & Boroumand, Jahangir, 2000. "Pricing Internet services: after flat rate," Telecommunications Policy, Elsevier, vol. 24(6-7), pages 565-590, August.
    • Handle: RePEc:eee:telpol:v:24:y:2000:i:6-7:p:565-590
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    Citations

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    Cited by:

    1. Olga Syraya, 2014. "Mobile Telecommunications and Digital Innovations," EIIW Discussion paper disbei200, Universitätsbibliothek Wuppertal, University Library.
    2. Yoon, Chang-Ho & Song, Young-Woong & Jun, Byoung Heon, 2005. "Efficient capacity pricing of the internet services," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 46(2), pages 149-158, December.
    3. repec:vuw:vuwscr:19156 is not listed on IDEAS
    4. Rajeev Goel, 2009. "Technological complementarities, demand, and market power," Netnomics, Springer, vol. 10(2), pages 161-170, October.
    5. Howell, Bronwyn, 2010. "Flat-Rate Tariffs and Competitive Entry in Telecommunications Markets," Working Paper Series 4053, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    6. Howell, Bronwyn, 2010. "Flat-Rate Tariffs and Competitive Entry in Telecommunications Markets," Working Paper Series 19156, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

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