Internet Service Provision and Content Services: Peering and Service Differentiation

We consider the relationship of Internet service providers (ISP) like network operators and content service providers in the Internet ecosystem. Currently the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth demanding video services. One issue here is that the further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision.