Formulating Taiwan’s Internet IP Peering Mechanism from Two-Sided Market Perspectives

• Main Authors: Tzu-cheng Tai, 戴自成
• Other Authors: Diana HweiAn Tsai
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/83550965027044629601

碩士 === 國立中山大學 === 經濟學研究所 === 98 === We propose that the industry structure in Taiwan broadband market is a two-sided market. In this framework, the networks need to be completely interconnected in order to ensure unhindered (or smoothly) information flow. Based on a two-sided market model, we analyze the IP peering mechanism for Taiwan Internet market. We show that the IP peering access charges should be a very low constant amount to reflect the unique Taiwan broadband industry structure. Furthermore, in attracting more Internet content providers (ICP) and end users to provide more content services and Internet applications, the Internet service providers (ISP) should provide free broadband services to ICPs. Though these results are contradictory with the “user-pays” principle, it ensures more profitable for ISPs and ICPs. Most importantly, the impacts on the whole social welfare are improved. Last, we examine a more efficacious framework for ensuring network neutrality is Efficient Component Pricing Rule (ECPR) in a vertically-integrated monopoly market, as in Taiwan Broadband industry.