Transit and Peering Competition Game between Internet Backbone Providers

The choice of interconnection modes between Internet backbone providers (IBPs) was studied to promote internet development, and make a reasonable interconnection policy. Through a dynamic game, the article analyzes how Networks, asymmetric in size, make a choice of interconnection models and compete for users. From the perspective of IBP and Society, the critical mass of interconnection modes is different. The interconnection modes of the Internet backbones in China should contain peering and transit modes, and not only peering modes. The IBPs are classified because of their different scales. The peering mode is applicable to the interconnection between backbones with similar scales, whereas, the transit mode is better for that between backbones with asymmetric scales. Accordingly, at present, a regulator should appropriately restrain the backbones with asymmetric scale adopting the peering mode, rather than promote it. Finally, the article brings forward multiple linear regression applications on the assessment of the IBPs' network value, which determines the rating of IBPs. Hierarchy determines the relationships between IBPs: symmetrical peering, asymmetrical peering, and transit connectivity modes.