Information Systems Frontiers

, Volume 19, Issue 4, pp 803–818 | Cite as

A game-theoretic evaluation of an ISP business model in caching

  • Jörn KünsemöllerEmail author
  • Nan Zhang
  • Kimmo Berg
  • João Soares


Internet traffic volume is increasing and this causes scalability issues in content delivery. This problem can be addressed with different types of caching solutions. The incentives of different stakeholders to pay for these solutions are not known. However, it has been identified that Internet service providers (ISPs) need to be involved in the process of cache deployment due to their ownership of the network. This work evaluates a new business model where ISPs charge content providers (CPs) for a caching service because CPs benefit from more efficient content distribution. We provide conditions for sustainable paid in-network caching and their numerical evaluation in order to aid strategic decision-making by CPs, ISPs, and Cloud storage providers (CSPs). Although ISP caching as a paid service may not be an equilibrium, it turns out to be Pareto optimal at the right pricing. This encourages cooperation between CPs and ISPs. CSPs may choose cache friendly physical locations for their facilities in order to provide the necessary capacity to the ISPs. However, the required amounts are in all likelihood too small to be an incentive for the CSPs. ISP caching as a paid service can be an equilibrium when future benefits are considered and when the ISPs terminate caching-related improvements of service quality for clients who do not pay for caching.


Caching Business model Cloud storage Content distribution 


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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  • Jörn Künsemöller
    • 1
    Email author
  • Nan Zhang
    • 2
  • Kimmo Berg
    • 3
  • João Soares
    • 4
  1. 1.Computer Networks GroupUniversity of PaderbornPaderbornGermany
  2. 2.Department of Communications and NetworkingAalto UniversityEspooFinland
  3. 3.Department of Mathematics and Systems AnalysisAalto UniversityEspooFinland
  4. 4.Portugal Telecom Inovação e SistemasAveiroPortugal

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