DTIA: Differentiated Traffic-based Interconnection Agreement

This paper presents a new model, called differentiated traffic-based interconnection agreement (DTIA) for reciprocal compensation between providers. In particular the model aims to achieve the twofold goal of i) determination of an original initiator of transmission, and ii) compensation of the interconnection costs. For that purpose, traffic is differentiated into two types, called native and stranger. In comparison to the existing financial settlement, under which the payments are based on the net traffic flows, the proposed model governs cost compensation according to the differentiated traffic flows. Besides, we describe a traffic management mechanism that supports the proposed traffic differentiation approach. Analytical studies were provided using Nash bargaining solution to investigate how the interconnection payments between providers depend on the presented approach.