Cost allocation between interconnected networks is based on measured traffic flows. This principle, however, does not provide a fair way for sharing costs. In this paper, a new bilateral model, called Differentiated Traffic-based Interconnection Agreement (DTIA) for intercarrier compensation is...

In terms of intercarrier compensation traffic flows are measured to allocate the costs between networks. This method provides a poor basis for sharing any costs. In this work we analyze the benefits of the traffic differentiation on the interconnection charges in unilateral and bilateral...

This paper addresses the inter-provider costs sharing issue by exploring the effect of the traffic differentiation on the interconnection payments. In particular, we determine an original initiator of a transmission by means of traffic differentiation into two types, referred to as native and...