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Publication Date:
March 2009
ISSN:
1446-9022
DOI:
10.2202/1446-9022.1170

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Editor-in-Chief: Wright, Julian

Ed. by Miravete, Eugenio J. / Panzar, John / Peitz, Martin / Rysman, Marc / Weisman, Dennis L.

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Costs of Neutral/Unmanaged IP Networks

Richard N. Clarke

1AT&T, mclarke@att.com

Citation Information: Review of Network Economics. Volume 8, Issue 1, Pages –, ISSN (Online) 1446-9022, DOI: 10.2202/1446-9022.1170, March 2009

Publication History:
Published Online:
2009-03-01

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 customer’s level of TV viewing. Such fees would likely make unmanaged/neutral Internet service commercially prohibitive.

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