Software

A Service-Based Model for the Internet Value Chain

Date Added: Jul 2011
Format: PDF

The exponential growth of Internet traffic is generating revenues which are not fairly distributed among all the actors involved in the value chain. In spite of the increasing returns for over-the-top service providers, application developers, and device producers, network operators and content right owners are not taking advantage of Internet evolution. Analysts forecast that in a few years this imbalance will cause the congestion of the network without any motivation for new investments on it, thus ultimately bringing the Internet to collapse. On the other hand, if properly distributed, the value generated by Internet traffic would be sufficient to sustain innovation and growth.