Service models and pricing policies for an integrated services Internet

This paper addresses the integration of services in the Internet and the resulting impact on pricing policies. I first address why an integrated services Internet is desirable, and give an overview of the services it is likely to offer. I then argue that an integrated services Internet, in order to be efficient, must employ per-user, quality-ofservice sensitive, and usage-based pricing policies. 1 Introduction In the next five years, the Internet will undergo significant technical changes. These will probably include dramatic increases in bandwidth 1 on the backbone transmission links, better physical access from homes and businesses, and a more sophisticated network architecture. Internet policies are also likely to change; these policy changes will probably include allowing more public access, increasing privatization of service provision, reduced or at least modified government subsidies, and new pricing schemes. These policy and technical changes will reinforce each other: some...