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Most Downloaded Articles
- Container Shipping And Ports: An Overview by Notteboom, Theo E.
- Optimal Monopoly Price Paths with Expanding Networks by Gabszewicz, Jean and Garcia, Filomena
- The Economics of the Online Advertising Industry by Evans, David S.
- Merchant or Two-Sided Platform? by Hagiu, Andrei
- Failure to Launch: Critical Mass in Platform Businesses by Evans, David S. and Schmalensee, Richard
Costs of Neutral/Unmanaged IP Networks
Citation Information: Review of Network Economics. Volume 8, Issue 1, Pages –, ISSN (Online) 1446-9022, DOI: 10.2202/1446-9022.1170, March 2009
- Published Online:
An important issue in "network neutrality" is the degree to which networks that comprise the Internet may be "managed" by their operators. This paper examines the current costs of unmanaged/neutral network technology and demonstrates that as customer Internet usage patterns evolve and become both more bandwidth-intensive and real-time oriented, a model of pure neutrality would be extremely expensive for consumers. Unmanaged network capacity sufficient to accommodate expected consumer demand growth currently would result in bills between $143 and $416 per month depending on the customers level of TV viewing. Such fees would likely make unmanaged/neutral Internet service commercially prohibitive.