Interaction of ISPs: Distributed
Resource Allocation and
Revenue Maximization
Sam C.M. Lee, Joe W.J. Jiang, John C.S. Lui
The Chinese University of Hong Kong
Tier-1 ISP
Tier-2 ISP
Local ISP
Peering link
Tier-2
ISPISP
Local
ISP
Peer
Peering link
ISP link
Peer
Peer
ISP
Peer
Peer
Peer
Optimization problem of peers
Peer i
Tier-2 ISP
(ISP)
Issues to consider:
1. performance of the link
2. charge of the link
Peer j
Peer k
Optimization problem of peers
Happiness obtained from
sending traffic to peers
Delay cost in ISP link
Payment to ISP
Delay costs in peering links
Payments to peers
Constraints of peers
1.
2.
3.
4.
Solution to the peers
• Objective function is strictly concave in
every transmission rate
• The optimal transmission rates and
maximum utility are unique and can be
found by Lagrangian method
Problems for an ISP
• Resource distribution
– How to determine the capacity for the peers
• Maximization of revenue
– How to determine the optimal value of unit price
Information exchange framework
Next period
Bandwidth
allocation
Bid
ISP
peer
Compute
resource
distribution
Compute
optimal
rates
ISP 1: Resource distribution
ISP
?
?
Bandwidth = 600MBps
?
peer1
peer2
peer3
Bid = 50MBps
Bid = 100MBps
Bid = 150MBps
Proportional share algorithm
ISP
100MBps
Bandwidth = 600MBps
200MBps
300MBps
peer1
peer2
peer3
Bid = 50MBps
Bid = 100MBps
Bid = 150MBps
Equal share algorithm
ISP
150MBps
Bandwidth = 600MBps
200MBps
250MBps
peer1
peer2
peer3
Bid = 50MBps
Bid = 100MBps
Bid = 150MBps
Simulations
• When the happiness coefficients of peers are
low
PSA
ESA
• When the happiness coefficients of peers are
high
PSA
ESA
ISP 2: Maximization of Revenue
Total revenue
Demand
Unit price
from
bythe
peer
peers
i
Determine the optimal price
Solution: Maximization of revenue
•Estimate the aggregate traffic (
peers in term of the price (P)
) from all
Conclusions
• Utility maximization of a peer
• Resource distribution of ISP
• Revenue maximization of ISP
Q&A