Deployment Model and Options
This page reflects the current discussions on integration of the InterStream architecture into Internet Service Provider (ISP) networks and the expected commercial expectations for such deployment.
ISPs will have several option as to how they choose to integrate the Media Grid within their networks. Since ISPs represent both retail and wholesale operations, they may choose to offer services and commercial implementations based on whether they are directly interfacing with consumers or primarily selling bandwidth services, respectively. ISPs can financially benefit by offering consumers premium service through resell of media grid content as well as premium bandwidth. In order for an ISP to participate, they must participate at a base level by at least offering premium bandwidth service. The retail organizations can then benefit through the sales of media grid hosted content.
- Wholesale bandwidth providers offer premium service by first placing media grid engines with the lowest possible latency within their access networks. By reducing latency, and thus round trip times (RTTs), these media grid engines will obtain much larger bandwidth share than comparable Content Delivery (CDN) and Cloud infrastructure. ISPs will receive settlement per the mediated bandwidth agreement after offering this premium best-effort service.
- Wholesale operators may wish to offer true guaranteed service by enabling use of and mediation systems on their network. By doing so, these operators will receive higher settlement fees and also have the option of providing retail billing to customers.
- Retail operators may wish to offer billing services to their subscribers. If these retail operators have enabled guaranteed service, they may directly bill their subscribers for content aggregation "pools" offered on the media grid. These content pools will be made available to broadband subscribers under both advertising sponsored as well as recurring fee models.
- ISPs are expected to deploy premium services, and in return receive settlement fees per the MBA using peak to mean pricing. The pricing will be higher for premium best-effort service than for guaranteed service. In addition, if guaranteed service is offered by the ISP, they will have the option of directly billing consumers for both premium services as well as content available under aggregation pools.
- Retail operators will receive a percentage of billed service in exchange for directly charging consumers for use of content pools on their mobile or broadband bills. The percentages will be established per the discussion in "next steps," below.
The InterStream Oversight Board (IOB) will establish pricing models for settlement after formalization. The board, may choose to create a worldwide, regional, or localized pricing approach for the options listed above. Each of these approaches offers various advantages and disadvantages. By creating a single global standard for pricing, customers of the service may feel more comfortable in committing to purchase large volumes of bandwidth. On the other hand, localized pricing, whereby individual ISPs set their own pricing for each of their own networks enables a better market opportunity for operators and may also avoid anti-competitive challenges.