Impact of the Net Neutrality Repeal on Communication Networks

Network neutrality is the principle of treating equally all Internet traffic regardless of its source, destination, content, application or other related distinguishing metrics. Under net neutrality, Internet service providers (ISPs) are compelled to charge all content providers (CPs) the same per Gbps rate despite the growing profit achieved by CPs. In this paper, we study the impact of the repeal of net neutrality on communication networks by developing a techno-economic Mixed Integer Linear Programming (MILP) model to maximize the potential profit ISPs can achieve by offering their services to CPs. We consider an ISP that offers CPs different classes of service representing typical video content qualities. The MILP model maximizes the ISP profit by optimizing the prices of the different classes according to the users’ demand sensitivity to the change in price, referred to as Price Elasticity of Demand (PED). We analyze how PED impacts the profit in different CP delivery scenarios in cloud-fog architectures. The results show that the repeal of net neutrality can potentially increase ISPs profit by a factor of 8 with a pricing scheme that discriminates against data intensive content. Also, the repeal of net neutrality positively impacts the network energy efficiency by reducing the core network power consumption by 55% as a result of suppressing data intensive content compared to the net neutrality scenario.