A Bandwidth Market in an IP Network
Thesis (MSc (Mathematical Sciences. Computer Science))--University of Stellenbosch, 2008.
Consider a path-oriented telecommunications network where calls arrive to each route in a Poisson process. Each call brings on average a fixed number of packets that are offered to route. The packet inter-arrival times and the packet lengths are exponentially distributed. Each route can queue a finite number of packets while one packet is being transmitted. Each accepted packet/call generates an amount of revenue for the route manager. At specified time instants a route manager can acquire additional capacity (“interface capacity”) in order to carry more calls and/or the manager can acquire additional buffer space in order to carry more packets, in which cases the manager earns more revenue; alternatively a route manager can earn additional revenue by selling surplus interface capacity and/or by selling surplus buffer space to other route managers that (possibly temporarily) value it more highly. We present a method for efficiently computing the buying and the selling prices of buffer space. Moreover, we propose a bandwidth reallocation scheme capable of improving the network overall rate of earning revenue at both the call level and the packet level. Our reallocation scheme combines the Erlang price  and our proposed buffer space price (M/M/1/K prices) to reallocate interface capacity and buffer space among routes. The proposed scheme uses local rules and decides whether or not to adjust the interface capacity and/or the buffer space. Simulation results show that the reallocation scheme achieves good performance when applied to a fictitious network of 30-nodes and 46-links based on the geography of Europe.