An empirical analysis of Internet providers’ interconnection strategies

Nathalie Colombier, Zouhaïer M'Chirgui, Thierry Pénard

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Abstract :
International audience
This paper examines the structure of relationships among the major Internet service providers in order to better understand the industrial organization and interconnection strategies of these providers. We show that the network of Internet services providers exhibits a small world structure that facilitates cooperation between them (small world structure yields efficiency in terms of coordination and communication). However, the topology of the Internet is characterized by some instability related to the intense competition occurring among providers on the regional markets. Finally, we show that interconnection decisions depend on asymmetry effects, network externalities and geographical proximity.
Published : 2011-06
Document Type : Journal articles
Affiliation : Centre de recherche en économie et management (CREM) ; Université de Caen Normandie (UNICAEN) ; Normandie Université (NU)-Normandie Université (NU)-Université de Rennes (UR)-Centre National de la Recherche Scientifique (CNRS)

Citation

Nathalie Colombier, Zouhaïer M'Chirgui, Thierry Pénard, « An empirical analysis of Internet providers’ interconnection strategies », ERIEP, 2011-06. URL : https://hal.science/hal-03468951