Community Research and Development Information Service - CORDIS

Pricing the internet; new prices for new services

A new model for establishing IP service fees has been developed, offering an alternative to the standard flat-rate model, which may not be sufficient to cover value-added IP services.
Pricing the internet; new prices for new services
Currently, one of the most widely used methods of charging for internet services is through the use of a flat-rate model. This is one in which a fee must be paid in order to have network access, independently of what the service is actually used for.

When it comes to certain value-added IP service needs, however, such as Quality of Service (QoS), charging, billing and accounting, the flat-rate model may actually fall short.

What has been proposed as an alternative is a pricing model based on the network resources that are actually consumed and reserved. This idea is based on the virtual delay value, a defined criterion which analyses the provided service qualitatively as well as quantitatively. The new model proposes charges on a per-call basis for IP services.

Considering the economical and technical aspects involved, this could assist in establishing a usage-based charging system for an administrative domain that wishes to provide differentiated network services.

The group is seeking partners for joint venture or agreement for technical cooperation.
Record Number: 81893 / Last updated on: 2005-09-18
Domain: IT, Telecommunications