Dynamic Internet Pricing with Service Level Agreements for Clients with Multi-ISP Connections A Thesis Submitted for the award of the degree of DOCTOR OF PHILOSOPHY by Rohit Tripathi Under the guidance of Prof. Gautam Barua Department of Computer Science and Engineering Indian Institute of Technology Guwahati-781039, Assam, India April 2016 TH-1482_08610101 Statement I do hereby declare that the matter embodied in this thesis is the result of investi- gations carried out by me in the department of Computer Science and Engineering, Indian Institute of Technology Guwahati, India, under the supervision of Prof. Gau- tam Barua. In keeping with the general practice of reporting scientific observations, due ac- knowledgments have been made wherever the work described is based on the finding of other investigators. Rohit Tripathi April, 2016 Research Scholar, Guwahati Department of Computer Science and Engineering, Assam, India Indian Institute of Technology Guwahati i TH-1482_08610101 ii TH-1482_08610101 Certificate This is to certify that the work described in this thesis entitled “Dynamic Internet Pricing with Service Level Agreements for Clients with Multi-ISP Con- nections” submitted by Rohit Tripathi, a research scholar in the department of Computer Science and Engineering, Indian Institute of Technology Guwahati, for the award of the degree of Doctor of Philosophy, is a record of an original research work carried out by him under my supervision and guidance. The thesis has fulfilled all requirement as per the regulations of the institute. The results embodied in this thesis have not been submitted to any other university or institute for the award of any degree or diploma. Gautam Barua April, 2016 Professor, Guwahati Department of Computer Science and Engineering, Assam, India Indian Institute of Technology Guwahati iii TH-1482_08610101 iv TH-1482_08610101 Acknowledgment I thank everyone who has helped or influenced me during the PhD duration. It is however not possible to mention everyone in this limited space. I thank my PhD supervisor, Prof. Gautam Barua for providing guidance and advises. He suggested goodresearchideas; improvementsandextensionsofmyresearchideas; andprovided guidance in every phase of PhD. Ithankmyinstitute, IITGuwahatiforprovidingthenecessaryresourcesfordoing research. The institute provided me access to online research libraries such as IEEE, ACM, Springer, etc. I was able to download almost all the research papers that I needed for my research. Computer Science and Engineering (CSE) Department, IIT Guwahati provided me access to high performance server for running simulations and this saved a lot of time. I thank funding agencies for providing me financial support during the PhD du- ration. MHRD provided me scholarship for five years. After the completion of the scholarshipduration, ourCSEdepartmentarrangedscholarshipforsomemonthsand then my supervisor arranged funding for remaining duration from one of his projects. I thank my parents for their support and patience during the PhD duration. I thank my friends for making the PhD duration comfortable. v TH-1482_08610101 vi TH-1482_08610101 Abstract One of the most important inventions which has revolutionized the way of living and working of people is the internet. The increase in internet coverage and the decrease in internet access price has resulted in demand for a good internet service. Clients want some guarantee in internet access quality. In this thesis, we present a modelinwhichclientsareguaranteedconnectionandbandwidthandifclientsdonot get the service they request, the service provider pays a penalty to the clients. We consider a system where each client has access to multiple internet service providers (ISP) and can choose one of them to connect to based on the prices being offered by the ISPs. When a client arrives, an ISP has to decide whether to accept the client, and the price to charge from the client for the duration of its connection. Rejection of a client results in a penalty and delay in getting requested bandwidth while connected also incurs a penalty. We assume a Poisson arrival process with the rate of arrival sensitive to the price being charged. While connected, a client sometimesremainidleandsometimesconsumesbandwidth; andboththesedurations are exponentially distributed. A service provider tries to maximize its income by charging appropriate prices based on its current state and deciding whether to accept more clients or not. Since penalties are imposed, such solutions also automatically balanceloadamongserviceproviders,andsothequalityofservicetoclientsimproves. We first present a solution to obtain Nash equilibrium between two ISPs. We then present a solution that maximizes the steady state income of service providers. As the computational complexity of this solution is high, we propose two approximate solutions. The solutions are then compared using simulation. Simulation results show that our solutions, including the approximate solutions, significantly improve quality of service of clients and increase the income of service providers as compared to a simple heuristic based solution that otherwise could to be used. vii TH-1482_08610101 viii TH-1482_08610101
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