Modeling for pricing of loss-rate guaranteed Internet service contracts

Technological advancements are allowing Internet service providers (ISPs) to provide quality of service (QoS) assurances for data flow through their domains. Depending on the application, QoS may be necessary not only as a bandwidth assurance, but also on the loss, delay, etc., experienced by the data. In the Internet technologies, such guarantees may only be provided in probabilistic terms. We develop a stochastic modeling framework for the pricing of probabilistic loss-rate guaranteed Internet service contracts.