Tiered Internet service

Tiered service structures allow users to select from a small set of third parties at a higher rate. Such systems are frequently seen in the telecommunications field, when it comes to wireless service , digital television and cable television options, and broadband internet access. [1]

When a wireless company, for example, charges are different, they are required, the company is using the principle of tiered service. This is also one of the following: Tiered pricing allows customers access to these services.

Tiered service helps to keep the quality of service standards for high bandwidth applications like streaming video or VoIP . This comes at a cost of increasing service levels. [2] Major players in the net neutrality debate-have Proposed tiered Internet content providers Who so pay more to Internet providers get better quality service. [3]


It was not until the Internet that it became a controversial issue. And it was not until the early 2000s that Internet carriers considered the option of abandoning net neutrality policies. [4] In 2005, the FCC changed the way broadband service providers are regulated. This made broadband service providers “information services” instead of “telecommunications services”. This means clustering Broadband Service Providers Were No follow subject to common carrier regulations. [5] Since the beginning of the twentieth century, common carriage guidelines required the quality of service must be the same for all users, preventing one customer from being favored over another. [4]During the first decades of the 1900s, this policy relates directly to the telephone industry, and AT & T specifically. However, in recent decades, the policy has grown to encompass a broader range of communication services. Preventing preferential treatment of customers in the realm of the Internet is referred to as the policy of net neutrality.

In the US, the Chairman of the Federal Communications Commission (FCC), Michael Powell, considered net neutrality to be fundamental to the success of the Internet and its view of the Internet. [4] The FCC continued its skepticism of a tiered pricing for quite some time, and it was not until the end of the day. In 2010, FCC Chairman Julius Genachowski announced that the benefits of third-party pricing can be avoided. [6] Genachowski expressed his fear of a “spectrum crisis” as a result of the increase in smartphone usage.

The FCC suggests a number of solutions to the problem of greater use of the unlicensed Wi-fi spectrum, more femtocells , and more efficient arrangement of cellular towers, but these measures are not expected to be kept open. [7] Attempts have been made to put price controls on tiered service. United States Congress has a bill to prevent a “two-tiered pricing scheme with priority service.” The bill did not pass Congress, but allowed the FCC to stop ISPs from blocking websites. [8]The way ISPs is provided by “access-tiering”. This is when a network operator grants bandwidth priority to those willing to pay for quality service. “Consumer-tiering” is where different speeds are marketed to consumers and based on the willingness to pay. [9]

Net neutrality

Net neutrality is the practice of keeping certain pipelines within the Internet. By blocking these pipelines, the provider creates a transfer of packets across the Internet, diminishing the quality of service. Internet service providers seek to discriminate against peer-to-peer (P2P) communication, FTP , online games, and high bandwidth activities, such as video streaming. [10] This practice is called bandwidth throttling . The only limitation of bandwidth is the space on which that information travels. In the United States, the American tax-payer has already purchased existing bandwidth.citation needed ] ISPs and corporations are attempting to buy and sell. quote needed ]

Tiered Internet


A tiered Internet gives priority to packets and receives a premium for service. [11] Network operators do this to simplify things such as network management and equipment configuration, traffic engineering, service level agreements, billing, and customer support. [12]

Tiered service fair queuing

Fair queuing is an algorithm that allows for network moderators to control packets by assigning flow weights. [1] Groups of guaranteed-service applications are categorized by their nature (eg “voice”, “video”, “game”) based on similar bandwidth and delay requirements. These guaranteed-service applications are given priority over best-effort applications which are limited by the access bandwidth available to the user.

Continuous rate network model

The continuous-rate network model allows for the payment of the required network. There must be mechanisms for the provision of arbitrary requests. This process can not be done for a long time. Bandwidth requests are inherently variable in size, arrival time, and duration. The network would then have much difficulty in maintaining a sufficient level of utilization and users’ expected quality of service. [12]


Initial reasoning against ISPs would be useful to the Internet. [13] Internet service providers could use this to prioritize affiliates instead of unaffiliated ones. [14] Many argue that one fast network is much more efficient than deliberately throttling the Internet. [15]

AT & T

AT & T had a trial in 2008 in Reno, NV, which was one of the first cases of in-house broadband internet pertaining to the amount of data used. [16]

BT Group

BT Group , a British telecommunications giant, is now going to charge users of their service. Meaning that they will not be handling their traffic across their network. [17]

Tiered cellular data plans

AT & T

AT & T revised their cellular data to third parties for specific types of use. AT & T indicated that tiered pricing may be brought to the future for LTE data plans. [18]

Metro PCS

MetroPCS has been accused of violating net neutrality by their proposed tiered cell phone data services. With some of these services being capped at some maximum, this violates various agreements for an open Internet. [19]


Sprint is implementing third-party plans for their mobile broadband products. The plans come in 3GB, 5GB, and 10GB capacities. Sprint previously claimed to have unlimited service, as their first venture into tiered pricing schemes. [20]


Verizon Wireless introduced its LTE network with the capability for tiered services at the end of 2010. Because the company’s 4G network is now available in the United States, Verizon has the opportunity to charge for faster data delivery. Such data plans allow Verizon to charge a tiered service platform, similar to many Internet services. [21]


There are many arguments between ISPs, which traditionally support tiered services, and network neutrality proponents. These services are necessary to maintain and maintain network performance. Also, third party pricing schemes provide a better service. Network neutrality proponents say that ISPs do not have the right to degrade Internet services to some users and that their service should be open and consistent. [22] Verizon CEO, Ivan Seidenberg, expressed his concerns with network neutrality regulations that restricts the prevention of “the benefits of smart networks.” [23]In 2011, it was reported that both critics and proponents believe that the debate over net neutrality and third parties. [24]


  1. ^ Jump up to:b Rouskas, GN (2009). Internet tiered services: Theory, economics, and quality of service. New York: Springer.
  2. Jump up^ Boliek, Babette (October 2008). Net Neutrality Regulation in the Mobile Telecommunications Market: A Cautionary Tale from the Era of Price Regulation . 3rd Annual Conference on Empirical Legal Studies Papers. p. 10.
  3. Jump up^ Feamster, Nick; Lixin Gao; Jennifer Rexford (January 2007). How to lease the internet in your spare time. ACM SIGCOMM Computer Communication Review . 37 (1): 61-64. doi : 10.1145 / 1198255.1198265.
  4. ^ Jump up to:c Surowiecki, James (20 March 2006). “Net Losses, James Surowiecki on the dangers of access to the Web” . The New Yorker . 5. 82 : 74 . Retrieved 14 April 2011 .
  5. Jump up^ Choi, Jay; Byung Kim (2010). “Net Neutrality and Investment Incentives”. RAND Journal of Economics . 41 (3): 446-471. doi : 10.1111 / j.1756-2171.2010.00107.x .
  6. Jump up^ Kang, Cecilia (28 Sep 2010). “FCC likely to back tiered pricing, analysts say” . The Washington Post . Retrieved 13 April 2011 .
  7. Jump up^ “Wireless Firms Weigh Metered Pricing” . TechWeb . Aug 25, 2010 . Retrieved 14 April 2011 .
  8. Jump up^ Hogendorn, Christian (July 2007). “Internet Broken: net neutrality versus open access”. International Economics and Economic Policy . 4 (2): 185-208. doi : 10.1007 / s10368-007-0084-6 .
  9. Jump up^ Kocsis, Victoria; Paul Bijl (2008). “Network Neutrality and Competition between Network: a Brief Sketch of the Issues”. Intereconomics . 43 (1): 15-24. doi : 10.1007 / s10272-008-0238-y .
  10. Jump up^ Svensson, Peter (19 Nov 2007). “Comcast Blocks Some Internet Traffic” . MSNBC . Retrieved 18 March 2011 .
  11. Jump up^ “two tiered Internet” . Retrieved 19 April 2011 .
  12. ^ Jump up to:b Rouskas, George; Nikhil Baradwaj. “On Internet Tiered Service”: 1-11.
  13. Jump up^ Fisher, Ken. “AT & T sees benefits to tiered Internet service” . Retrieved 18 March 2011 .
  14. Jump up^ “two-tiered internet” . July 10, 2006 . Retrieved 15 March 2011 .
  15. Jump up^ Felten, Ed (18 Jan 2006). “How Would Two-Tier Internet Work? E” . Retrieved 15 March 2011 .
  16. Jump up^ Munchbach, A. “AT & T Reno hits, NV with tiered broadband trials” . Retrieved 15 March 2011 .
  17. Jump up^ Manchester, LB “UK online service creates ‘two-tiered’ Internet, critics allege” . Retrieved 15 March 2011 .
  18. Jump up^ Ziegler, C. “AT & T makes sweeping changes to data plans, iPhone tethering coming iOS 4 launch” . Retrieved 15 March 2011 .
  19. Jump up^ Whitney, L. “MetroPCS accused of blocking some net content” . Retrieved 1 February 2011 .
  20. Jump up^ Lutz, Zachary. “Sprint set to introduce tiered data for mobile broadband, steal candy from children” . Retrieved 3 May 2011 .
  21. Jump up^ “Verizon LTE price options” . Global Telecoms Business . 1 November 2010 . Retrieved 4 May 2011 .
  22. Jump up^ Reed, Brad. “Net neutrality vs. tiered services” . Retrieved 2 May 2011.
  23. Jump up^ Reardon, Marguerite. “Verizon CEO Slams Net Neutrality” . Retrieved 2 May 2011 .
  24. Jump up^ Hatch, David (14 Apr 2011). “Both Sides Overstate Case on Net Neutrality” . National Journal . Retrieved 4 May 2011 .