Bandwidth Provisioning and Pricing for Networks with Multiple Classes of Service?

Network service providers purchase large point-to-point connections from network owners, then offer individual users network access at a price. Appropriately provisioning (purchasing) and allocating (pricing) connections remains a difficult problem due to increasing demands and network dynamics. However, connection management is more complex with the deployment of Quality of Service (QoS). This paper describes a scalable connection management strategy for QoS enabled networks. The management technique maximizes profit, while reducing blocking experienced by users. Important issues regarding demand estimation, connection duration, and pricing intervals, are addressed and analyzed. Simulation results are also provided to demonstrate the viability of the proposed system. Key words: Connection Management; SLA; DiffServ; Bandwidth Pricing; Microeconomics