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      A Proposal for Pricing Media Grid Services
 

 

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    Previously, I mentioned that InterStream must play some role establishing the standards for the quality and objective price comparison of media grid services. As we move through our pilot, we have to keep our overall intentions to create a broadly available new bandwidth commodity known as media grid service. In order to gain an understanding of both where we need to go with the service as well as how to price it, we need take a quick examination of the past.

IP Transit and the World Wide Web

Originally, the Internet was a network of networks interconnected by government and educational institutions. As the Internet became commercialized in the mid-90s, a new paradigm had to be established. The world wide web implied a global reach. Therefore, a commodity bandwidth service had to be developed to ensure that reach. That service, today, is known as IP Transit. IP Transit is purchased on a monthly basis and paid for in megabits per second. A similar pricing scheme can be used for media grid services. However, this time absolute capacity measures don't have to be used.

Content providers, or "streamcasters" in our case, tend to think of buying bandwidth in terms of the number of bytes streamed rather than the number of megabits per second per month. Providers of IP Transit like to sell it that way because they think in terms of offering network capacity. This approach is confusing to these customers because they must purchase an absolute amount of capacity continuously that could be used 24 hours a day, 7 days a week. If the customer uses that capacity inefficiently, then they are overpaying for the service and must figure out how to get their end-users to consume that bandwidth more evenly throughout the day and week.

As I've previously articulated, we term the efficiency in which customers use the infrastructure as the peak-to-mean ratio, or P:M. The higher the P:M, the more volatile the customer's use of that capacity. Lower P:Ms mean the streamcaster is using that capacity and through aggregation of demand can support their business models through improved economies of scale. By assigning an incentive curve which can map the cost in terms of gigabytes streamed against the peak-to-mean ratios, streaming bandwidth can be priced in terms of bytes while offering an incentive to those streamcasters who use the infrastructure more efficiently. (See the graph below.)

           
   
Establishing Premium Services with a Global Reach

Currently, IP Transit service reaches globally under a best-effort delivery model.  On the global network, there are primarily two places where there is constrained capacity or bottlenecks. In order for InterStream to deliver that same global reach best-effort service offers, those bottlenecks must be circumvented or mediated. Between major geographies, like North America and Europe, bandwidth should get more expensive than within one of those continents. Capacity is limited across oceans and service cannot be easily guaranteed on those portions of the Internet's backbone today. Similarly, within the last-mile, bandwidth is also a precious commodity. InterStream Internet Service Providers (ISPs) set the prices for their bandwidth for those last-mile bottlenecks by applying mediation policies to them.

Measuring the Global and Local Reach

Globally, media grid service must be available in any region of the world that InterStreamsm serves. Therefore, peak-to-mean ratios (P:Ms) must be measurable during our pilot implementation so that we can determine how to establish the incentive pricing curve as well as having a good understanding of how efficiently customers will be using the InterStream bandwidth. In addition, the "working set" for locally stored content has to be determined. The geographic working set or a model whereby the global "tier zero" guarantee service between geographies must be established. Either way, core statistics must be gathered to determine which approach is most economically viable for ISPs to use. With the right understanding of network conditions across multiple network conditions, content can be stored anywhere, both locally and from a single point for a more efficient (ie. lower P:M) network infrastructure.

            

Locally, that is within the last-mile, there are two key sets of metrics that will be established during the InterStream pilot. These the mediation metrics and Stream Blocking Probability (SBP). The mediation metrics specify how bandwidth will be allocated for different applications. Of course, during our pliot test we will not be specifying exactly what the thresholds will be for various applications. However, we will be to establish approximations for these thresholds across different last-mile connections. See our wiki for more details.

The Stream Blocking Probability (SBP) specifies the likelihood that a particular ISTP stream will complete its transmission without interruption. Of course the Association would like to set the quality standards for this metric as low as possible. By doing so, end-users will the highest quality of experience possible. However, there are two different conditions in which this might occur. On some bottlenecks, which are unmediated, the SBPs could be set at a different level than the mediated ones. The pilot test must clearly establish what the SBPs should and will be for an ISP to claim itself as a provider in the InterStreamsm Association. (See the diagram, below.)

                

Conclusion

During our pilot test, the following key metrics will be used in managing our test results:

            Global:
                Peak-to-Mean (P:M)
                Pricing Incentive Curve
                Geographic Working Set

            Local:
                Stream Blocking Probability (SBP)
                Mediation Policy Metrics

Our InterStream pilot test plan establish media grid service as a new premium bandwidth commodity on the Internet's backbone by using these metrics to set pricing policies as well as the quality standards for the Association. We're committed to maintaining a transparent and open process for both the pilot test and establishment of our quality standards. If you represent an ISP, please feel free to contact us at info <at> interstream.com for more information.

Jeff Turner
 

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