A Market-Based Bandwidth Charging Framework

The increasing demand for high-bandwidth applications such as video-on-demand and grid computing is reviving interest in bandwidth reservation schemes. Earlier attempts did not catch on for a number of reasons, notably lack of interest on the part of the bandwidth providers. This, in turn, was partially caused by the lack of an efficient way of charging for bandwidth. Thus, the viability of bandwidth reservation depends on the existence of an efficient market where bandwidth-related transactions can take place. For this market to be effective, it must be efficient for both the provider (Seller) and the user (Buyer) of the bandwidth.