Abstract:

To analyze behavior of two Internet backbone provider(IBP) in the course of interconnection, a non-cooperative game model to analyze the interconnection decision between two IBP was developed. The conclusions show that the rational behaviors of the providers accord with the government when the market structure is relative symmetric, but when the market structure is extremely asymmetric the providers' behaviors are contrary to expectations of the government. The government forced interconnection between the providers; on the other hand, more importantly, the government should encourage interconnection between weak IBP or ISP in order to reduce asymmetry of market. It makes the behaviors of the providers accord with the expectations of the government and the consumers, only in this situation, the interconnection problem can be solved fundamentally.

Key words: interconnection, Internet backbone, non-cooperative game