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.
This is a preview of subscription content, log in to check access.
Buy single article
Instant access to the full article PDF.
Price includes VAT for USA
Subscribe to journal
Immediate online access to all issues from 2019. Subscription will auto renew annually.
This is the net price. Taxes to be calculated in checkout.
Note that the game model could also be improved in other ways to make it more realistic. For example, the deployment of caching services takes some time, and thus the ISP first decides whether or not to deploy caching and after the caching system is up and running, the CP decides whether or not to pay for it. This could be modeled as a two-stage game but it would not change the fact that the CP has no incentive to pay for caching.
Abreu, D. (1988). On the theory of infinitely repeated games with discounting. Econometrica, 56(2), 383–396.
Ahlgren, B., Dannewitz, C., Imbrenda, C., Kutscher, D., & Ohlman, B. (2012). A survey of information-centric networking. IEEE Communications Magazine, 50(7), 26–36.
Akamai (2015). Aura licensed cdn (lcdn). https://www.akamai.com/us/en/solutions/products/network-operator/. Accessed on Dec 1st 2015.
Akamai (2015). Customer stories: Mtv networks. https://www.akamai.com/us/en/our-customers/customer-stories-mtv-networks.jsp. Accessed Dec 1st 2015.
Akamai (2015). Peering networks detailed view. http://www.peeringdb.com/view.php?asn=20940, Accessed Dec 1st 2015.
Armbrust, M., Fox, A., Griffith, R., Joseph, A., Katz, R., Konwinski, A., Lee, G., Patterson, D., Rabkin, A., Stoica, I., & Zaharia, M. (2010). A view of cloud computing. Communications of the ACM, 53(4), 50–58.
AT&T (2015). Content delivery and digital media services. http://www.business.att.com/enterprise/Portfolio/content-delivery/. Accessed Feb 16th 2015.
AWS. (2015). Amazon s3 pricing. http://aws.amazon.com/s3/pricing/. Accessed on June 29th 2015.
Barish, G., & Obraczka, K. (2000). World wide web caching: Trends and techniques. IEEE Communications Magazine, 38, 178– 184.
Berg, K., & Kitti, M. (2013). Computing equilibria in discounted 2×2 supergames. Computational Economics, 41, 71–78.
Berg, K., & Kitti, M. (2014). Equilibrium paths in discounted supergames. http://econpapers.repec.org/paper/tkkdpaper/dp96.htm. Work in progress.
Carofiglio, G., Morabito, G., Muscariello, L., Solis, I., & Varvello, M. (2013). From content delivery today to information centric networking. Computer Networks, 57(16), 3116–3127.
Chen, Y., Katz, R.H., & Kubiatowicz, J. (2002). Dynamic replica placement for scalable content delivery. In Druschel, P., Kaashoek, F., & Rowstron, A. (Eds.) Peer-to-Peer Systems, (Vol. 2429 pp. 306–318). Berlin: Springer. http://link.springer.com/chapter/10.1007.
Cho, K., Jung, H., Lee, M., Ko, D., Kwon, T.T., & Choi, Y. (2011). How can an isp merge with a cdn IEEE Communications Magazine, 49(10), 156–162.
Cisco (2014). Cisco global cloud index: Forecast and methodology, 2013–2018. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.pdf. Accessed on June 29th 2015.
Cisco (2015). Cisco visual networking index: Forecast and methodology, 2014–2019. http://www.cisco.com/c/en/us/solutions/collateral/service-provider/ip-ngn-ip-next-generation-network/white_paper_c11-481360.pdf. Accessed on June 29th 2015.
Comcast: Plans & pricing (2015). http://business.comcast.com/internet/business-internet/plans-pricing.
Costa-Requena, J., Kimmerlin, M., Manner, J., & Kantola, R. (2014). Sdn optimized caching in lte mobile networks. In 2014 International Conference on Information and Communication Technology Convergence (pp. 128–132). South Korea: Busan.
Dán, G. (2011). Cache-to-cache: Could isps cooperate to decrease peer-to-peer content distribution costs IEEE Transactions on Parallel and Distributed Systems, 22(9), 1469–1482.
Dilley, J., Maggs, B., Parikh, J., Prokop, H., Sitaraman, R., & Weihl, B. (2002). Globally distributed content delivery. IEEE Internet Computing, 6(5), 50–58.
DiPalantino, D., & Johari, R. (2012). Traffic engineering with semiautonomous users: A game-theoretic perspective. IEEE/ACM Transactions on Networking, 20(6), 1938–1949.
Faratin, P. (2007). Economics of overlay networks: An industrial organization perspective on network economics. In Proceedings of the Joint Workshop on The Economics of Networked Systems and Incentive Based Computing (NetEcon+IBC), in conjuction with ACM Conference on Electronic Commerce (EC’07).
Faratin, P., Clark, D., Bauer, S., & Lehr, W. (2008). The growing complexity of internet interconnection. Communications & Strategies, 72, 51–71.
Fitchard, K (2012). Forget the cdn players, netflix is caching its own video. http://gigaom.com/video/forget-the-cdn-players-netflix-is-caching-its-own-video/.
Frank, B., Poese, I., Lin, Y., Smaragdakis, G., Feldmann, A., Maggs, B., Rake, J., Uhlig, S., & Weber, R. (2013). Pushing cdn-isp collaboration to the limit. SIGCOMM Comput. Commun. Rev., 43(3), 34–44. doi:10.1145/2500098.2500103.
Fudenberg, D., & Tirole, J. (1991). Game Theory: MIT Press.
Google (2015). Google caching overview. https://peering.google.com/about/ggc.html. Accessed on Feb 16th 2015.
Grove, N., Agic, D., & Sedlmeir, J. (2013). Reporting policies of isps: Do general terms and conditions (gtcs) match with the reality?. In TPRC 41: The 41st Research Conference on Communication, Information and Internet Policy.
Hamilton, J. (2010). Cloud computing economies of scale. http://channel9.msdn.com/events/MIX/MIX10/EX01/. MIX’10 talk.
Hassan, M.M., Hossain, M., Sarkar, A., & Huh, E.N. (2014). Cooperative game-based distributed resource allocation in horizontal dynamic cloud federation platform. Information Systems Frontiers, 16(4), 523–542. doi:10.1007/s10796-012-9357-x.
Jiang, W., Zhang-Shen, R., Rexford, J., & Chiang, M. (2009). Cooperative content distribution and traffic engineering in an isp network. ACM SIGMETRICS Performance Evaluation Review - SIGMETRICS ’09 pp. 239–250. doi:10.1145/1555349.1555377.
Katsaros, K., Xylomenos, G., & Polyzos, G.C. (2011). Multicache: An overlay architecture for information-centric networking. Computer Networks, 55(4), 936–947.
Khare, V., & Zhang, B. (2011). Making cdn and isp routings symbiotic. In Proceedings of the 2011 31st International Conference on Distributed Computing Systems, ICDCS ’11. 869–878. IEEE Computer Society, Washington, DC, USA.
Kimmerlin, M., Costa-requena, J., & Manner, J. (2014). Caching using software-defined networking in lte networks. In Proceedings of IEEE International Conference on Advanced Networks and Telecommunications Systems.
Künsemöller, J., Zhang, N., & Soares, J. (2013). Isp business models in caching. In Proceedings of the 29th International Conference on Data Engineering, Workshops (ICDEW 2013) (pp. 279–285).
Labovitz, C., Iekel-Johnson, S., McPherson, D., Oberheide, J., & Jahanian, F. (2010). Internet inter-domain traffic. ACM SIGCOMM Computer Communication Review, 40(4), 75–86.
Lee, S., Jiang, J., Chiu, D.M., & Lui, J. (2008). Interaction of isps: Distributed resource allocation and revenue maximization. IEEE Transactions on Parallel and Distributed Systems, 19(2), 204–218. doi:10.1109/TPDS.2007.70714.
Level3 (2010). News archive: Level3 releases statement to clarify issues in comcast/level3 interconnection dispute. http://news.level3.com/index.php?s=23600&item=65047. Accessed Dec 1st 2015.
Netflix (2015). Netflix open connect content delivery for isps. https://openconnect.itp.netflix.com/deliveryOptions/index.html. Accessed Dec 1st 2015.
Norton, W.B. (2010). Internet transit prices - historical and projected http://drpeering.net/white-papers/Internet-Transit-Pricing-Historical-And-Projected.php.
Norton, W.B. (2014). The 2014 Internet Peering Playbook: Connecting to the Core of the Internet. DrPeering Press.
Pardalos, P., Migdalas, A., & Pitsoulis, L. (2008). Pareto Optimality, Game Theory and Equilibria. Springer Optimization and Its Applications: Springer.
Peterson, L., & Davie, B. (2014). Rfc 7336: Framework for content distribution network interconnection (cdni). http://tools.ietf.org/html/rfc7336.
Pham, T.M. (2015). Analysis of isp caching in information-centric networks. In Proceedings of the IEEE RIVF International Conference on Computing Communication Technologies - Research, Innovation, and Vision for the Future (RIVF). doi:10.1109/RIVF.2015.7049891 (pp. 151–156).
Psaras, I., Chai, W., & Pavlou, G. (2012). Probabilistic in-network caching for information-centric networks. In Proceedings of the second ACM SIGCOMM workshop on Information-Centric networking.
Rayburn, D. (2015). The state of the cdn market: Video pricing, contract, volume and market sizing trends. www.cdnpricing.com.
Shakkottai, S., & Srikant, R. (2006). Economics of network pricing with multiple isps. IEEE/ACM Transactions on Networking, 14(6), 1233–1245. doi:10.1109/TNET.2006.886393.
Shrimali, G., Akella, A., & Mutapcic, A. (2010). Cooperative interdomain traffic engineering using nash bargaining and decomposition. IEEE/ACM Transactions on Networking, 18(2), 341–352. doi:10.1109/TNET.2009.2026748.
Soares, J., Carapinha, J., Melo, M., Monteiro, R., & Sargento, S. (2012). Resource allocation in the network operator’s cloud: A virtualization approach Computers and Communications (ISCC), 2012 IEEE Symposium on, pp. 000,800–000, 805.
Telefonica (2014). Akamai and telefnica enter into global content delivery alliance. https://www.globalsolutions.telefonica.com/en/news/2014/03/25/telefonica-and-akamai/. Accessed Dec 1st 2015.
Vakali, A., & Pallis, G. (2003). Content delivery networks: Status and trends. IEEE Internet Computing, 7(6), 68–74.
Vaquero, L., Rodero-Merino, L., Caceres, J., & Lindner, M. (2009). A break in the clouds: towards a cloud definition. ACM SIGCOMM Computer Communication Review, 39(1), 50–55.
der Veen, V. (2011). Orange and cogent fight over traffic management before french competition watchdog. http://www.futureofcopyright.com/home/blog-post/2011/09/08/orange-and-cogent-fight-over-traffic-management-before-french-competition-watchdog.html.
Wang, X., Chen, M., Taleb, T., Ksentini, A., & Leung, V.C.M. (2014). Cache in the air: Exploiting content caching and delivery techniques for 5g systems. IEEE Communications Magazine, 52(2), 131–139.
Wong, R.K. (2013). Feasibility and a case study on content optimization services on cloud. Information Systems Frontiers, 15(4), 525–532. doi:10.1007/s10796-012-9379-4.
Wulf, J., Zarnekow, R., Hau, T., & Brenner, W. (2010). Carrier activities in the cdn market - an exploratory analysis and strategic implications. In 2010 14th International Conference on Intelligence in Next Generation Networks. doi:10.1109/ICIN.2010.5640943 (pp. 1–6).
The work of J. Künsemöller is funded by the German Research Foundation (DFG) within the Research Training Group Automatisms and the Collaborative Research Center On-The-Fly Computing (SFB 901). The work of N. Zhang has been performed in the framework of the CELTIC-Plus project C2012/2-5 SIGMONA. The work of J. Soares is funded by the Portuguese Foundation of Science and Technology (No SFRH/BDE/51102/2010). K. Berg acknowledges the funding from Emil Aaltosen Säätiö through Post doc -pooli.
About this article
Cite this article
Künsemöller, J., Zhang, N., Berg, K. et al. A game-theoretic evaluation of an ISP business model in caching. Inf Syst Front 19, 803–818 (2017). https://doi.org/10.1007/s10796-015-9619-5
- Business model
- Cloud storage
- Content distribution