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Method and Device for Calculating the Price for Traffic from a Node to a Set of Nodes

IP.com Disclosure Number: IPCOM000124714D
Original Publication Date: 2005-May-04
Included in the Prior Art Database: 2005-May-04
Document File: 1 page(s) / 22K

Publishing Venue

IBM

Abstract

The proposal is directed towards solving the problem of modeling price dynamics between sets of nodes. Pricing models can be used for valuation, derivative valuation, and risk management.

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Method and Device for Calculating the Price for Traffic from a Node to a Set of Nodes

A problem - price dynamics between sets of nodes - has been identified by Matrix.net who offer QoS measurement products which reflect QoS to sets of nodes (destinations) on the Internet via different provider networks.

The proposal is directed towards solving the problem of modeling price dynamics between sets of nodes. An application of this modeling is IP-transit pricing. Pricing models can be used for valuation, derivative valuation, and risk management. The solution deals with the whole set of nodes and all the available subsets of nodes. The model may be applied to both spot price modeling and forward price modeling as underlying commodities.

The proposal uses as a basis comparison of prices between sets of nodes. Each set of nodes is such that the set of nodes of interest to customers is contained within the union of each of these sets. The proposal is to apply known higher level pricing mechanics to create price models. Each set of nodes has a QoS measurement or measurements that are formed into a QoS index of interest to the customer. These indices are comparable across sets of nodes. These can be combined.

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