Per-packet pricing scheme for IP networks

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Scopus citations


In this paper we present a new pricing scheme for IP networks, in which the payment is collected on a per-packet basis in each router on the packet path. DiffServ protocol is used to carry the users' required services level. The proposed pricing scheme is analyzed by using network simulations for four scenarios. The first illustrated that which is well known, that users pay for a certain service level and might receive a lower service level from the network or service providers, especially when the network is congested. The second is the new pricing scheme in which users pay for the actual network service level he or she gets, that is, a lower price for reduced service level during the communication session. The third enhances our scheme such that each router changes its price for each service level with relation to its own congestion for the specific output port. The last further enhances our scheme by enabling the users to limit their expenses by enforcing a money limit in the packet's header. The comparison between the different simulation results suggests that the new pricing scheme increases both service provider revenue and the user's welfare.

Original languageEnglish
Title of host publication10th International Conference on Telecommunications, ICT 2003
PublisherInstitute of Electrical and Electronics Engineers Inc.
Number of pages7
ISBN (Electronic)0780376617, 9780780376618
StatePublished - 1 Jan 2003
Event10th International Conference on Telecommunications, ICT 2003 - Papeete, Tahiti, French Polynesia
Duration: 23 Feb 20031 Mar 2003

Publication series

Name10th International Conference on Telecommunications, ICT 2003


Conference10th International Conference on Telecommunications, ICT 2003
Country/TerritoryFrench Polynesia
CityPapeete, Tahiti


  • Differentiated Services (DiffServ)
  • IP-billing
  • IP-pricing
  • ISP
  • Quality of Service (QoS)
  • Service Level Agreement (SLA)

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Signal Processing
  • Computer Science Applications


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