Charging Schemes For Multiservice Networks: Frank
Charging Schemes For Multiservice Networks: Frank
Charging Schemes For Multiservice Networks: Frank
1. Introduction
Usage-sensitive charging schemes aim to ensure that connection charges properly reflect the load imposed on
the network. In nnultiservice networks the bandwidth and quality of service requirements of different connections
can impose greatly differing loads. With usage-sensitive charging customers have an incentive to prioritise their
traffic appropriately, and the network operator’s revenue should match the investment required to provide
capaclty to carry the traffic.
In a multiservicie environment the balance between simplicity and complexrty needs to be carefully drawn.
Charging and billing may form a large part of the total cost of a network, increasing the appeal of schemes
based solely on access and subscription charges. But the heterogeneity of traffic characteristics and quality-of-
service requirerrients increases the difficulty of network management and control; and, in networks where
intelligence is distributed to customers and their equipment, usage-sensitive charging schemes may, through the
incentives they provide, improve the stability and robustness of the entire system, comprising both network and
customer equipment.
The development of charging schemes raises hdamental questions about how to characterise network load, to
what extent should customers be involved in declaring their traffic load and priorities, and how significant are
usage-related costs relative to ather fixed network costs over various time-scales.
Several charging schemes have been proposed for the lntemet and for ATM networks. Approaches that have
been studied include iterative distributed pricing schemes, and schemes based on effective bandwidth. A ‘smart
market’ approach has also been proposed where packet prioritisation and pricing are based on user bids. These
schemes aim to be incentivetompatible - that is they provide the right incentive for customers to declare their
true priorities.
The European A.CTS project CA$hMAN (Charging and Accounting Schemes in Multiservice ATM Networks)
is studymg these: issues. CA$hMAN aims to identie good candidates for ATM c h a r p g schemes, develop the
necessary hardware and software facilities to implement them in user trials, and to use these trials to gain
experience of implementation issues and to acquire user feedback.
In section 2 of this paper we discuss the important issues attached to usage-sensitive char-g and summarise
the research on this subject.
In section 3 we review the concept of effective bandwidth and present a charging scheme suitable for delay-
sensitive connections, where statistical sharing is important over short time-scales, comparable to or less than
round-trip delay times across the network. We assume that such sources are policed, for example by leaky
bucket regulators of the sort used to define the peak or sustainable cell rate parameters of an ATM traffic
contract 1191. lihese policing parameters provide upper bounds on the behaviour of sources, but may not
characterize sources well: for example sources may only occasionally need to burst at rates close to the bounds.
We describe charging and connection acceptance mechanisms based on the traffic produced by a source, as well
Lyndewode Research
Lyndewode-Re!;earch@lyndewode.co. uk
2. Usage-sensitive charging
2.1 Services and charging in multiservice networks
ATM is being developed as the technology for broadband multiservice networks. The ATM Forum [20] has
proposed classes of network services, dependmg on whether the information flow is sensitive to delay and
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information loss Constant Bit Rate, Variable Bit Rate (real-time and non-real-time), Available Bit Rate, and
Unspecified Bit Rate. ITU standards [19] define various transfer capabilities, including Deterministic Bit Rate,
Statistical Bit Rate and Available Bit Rate.
In contrast to this mix of guaranteed and best-effort services the Intemet currently provides all services on a
best-effort basis. The services are likewise undifferentiated by tariff and in general end users pay only for
access and not for usage. This flat-rate charging has undoubtedly been an important factor in stimulating traffic
growth and development of new applications, but it will no longer be tenable in an environment of rapid
commercial growth and increasing demand for high bandwidth services. In fact a number of new Intemet
service definitions are currently under study [2]. These provide for a range of qualrty of service specifications
wtth differing levels of guarantee on packet loss and delay, includmg Guaranteed, Controlled-Load, Predictive,
Controlled Delay and Committed Rate. This work is also addressing how these service definitions can be
mapped onto ATM services to assist interoperability between IP and ATM.
The efficient operation of multiservice networks requires clear hfferentiation of services and the use of charging
schemes that are usage-sensitive and reflect the service being offered. Usage-sensitive charging offers a number
of benefits:
0 It gives users an incentive to declare their priorities and constrain their traffic demands appropriately.
It allows the provision of a range of service classes with appropriate cost recovery.
0 Overall charges reflect network costs, thus giving network operators the right incentive to upgrade capacrty.
0 It can moderate undue incentives for resale of capacity to third parties.
In practice telecommunication charges have generally contained several components - flat-rate charges such as
service access fees and subscriptions, usagedependent charges, and other dependencies (for example, distance,
time-of-day, quality of service). In multiservice networks the usagedependent component can become much
more complex, making the whole tariff structure unacceptably complicated. There is a need to consider
carefully the requirements of all parties involved, including customers, network operators, service providers,
and suppliers of terminal equipment and application software.
CA$hMAN surveys have found that customers tend to like flat-rate charging because it is simple and their
charges are predictable. Usage-sensitive chargmg may be acceptable to the extent that it is understandable and
controllable, but customers are less likely to accept congestion-sensitive charges which they cannot control.
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However usagesensitive chargmg schemes enable the network operator to operate the network efficientlywith a
range of diffenntiated services. Hence the challenge is to develop charging schemes that adequately reflect
resource usage while being sufficiently simple for user acceptability and costetlkctive implementation.
for particular choices of s and t. There may be several constraints on effective bandwidths corresponding to
dif€erent physical or logical resources within a network, and to priority disciplines [lo, 111.
To illustrate the calculation of an effective bandwidth, consider the very simple case of an d o f f source which
produces workload at a constant rate h while in an ‘on’ state, and produces no workload while in an ‘off state.
Suppose the periods spent in ‘on’ and ‘off states are large and that the mean rate of the source is m. The
effective bandwiakh of such a source is
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and this expassion provides a bound on the effective bandwidth (1) of any source wah peak rate h and mean
rate m. For k e d h the function (2) is increasing and concave in m, while for fixed m it is increasing and convex
in h. As s -+ 0 (corresponding to a very large capacxty C in relation to the peak h), the effective bancivvldth
approaches m,the mean rate of the source. However as s increases (corresponding to a larger peak h in relation
to the capacrty 0 the effective bandwidth increases to the peak rate h of the source.
More generally, suppose that source j is policed by parameters (rfi). bfi), k=I.2,...K), so that Xj(0, cannot
exceed r(k)T+b(k) for any T and for k=I.2,...,K. Then an upper bound on the effective bandwidth (1) is
provided by expression (2) with h replaced by the minimum over k of r(k) +b(k)/?.
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charging and clonnection acceptance. Suppose that a resource has accepted connections 1J7..J7 and write (oj,
bj) for the coefficients (u(h,m),b(h,m))describing a tangent (3) to the bound (2) on the efktive banhdth
function of connectionj . Suppose thatthe resource measures the arriving workload X,[t] from mection j over
a period of leq@ r, and let Mj = A'j[t]/t.Define the effective loud on the resource to be
J
c (cl.+ bpi). (4)
j=1
Then a connection acceptance control may be defined as folIows. A new request for a cuxmedion should be
accepted or rejected according as the most recently calculated ef5xt.m load lies below or above a threshold
value, with the proviso that if a request is rejected then later requests are also rejected d either a short
interval has e1,apsed or an existing umnection has terminated. For further discussion of sucb controls, see
Gibbens et al. [I 121.
Both the chargmg mechanism and the connection acceptance control described above use bounding tangents to
the effechve bandwidth function. If the same tangents are used for both purposes then the eilkave load has a
natural interpn&tion as an aggregate charge at the resource over a recent short period. But there is no necesse
for identical tangem to be used for charging and for connectim acceptance. lhus users choosing a small peak
rate might be clfked no further choice of tariff, so that for charging purposes the effective bandwidth function
is bounded by a single tangent. In umtrast, the resource might choose its tangent to the efkxive bandwidth
function at the point where the mean rate is the long-term observed average for traffic with that peak rate. Or, if
distinct ef5ctrve bandwidth functions are used for charging and connection acceptance ccmtrol, then the
resource mi& still choose its tangent according to user's declaration of expected mean rate.
Distinct eflktive bandwidth functions might be appropriate for charging and connection acceptance control,
since the two ,areas have quite different timescales and requirements for precision. Conneuion acceptance
control must use accurately calculated effective bandwidths, based on the buffer sizes, port speeds and other
features of cunrent hardware to make decisions on connections as they request connection, othenvise quality of
service guarantees on loss rates may be compromised. While charges need to be precisely defined, they
influence users' behaviour and software application design over much longer time-scales, where features of
hardware may evolve. Thus tariff design might include consideration of the possible ef%&ve bandwidth
functions appropriate to future hardware and network scale.
A fuller discuasion of connection acceptance umtrol would consider multiple constraints on effective
bandwidth, network routing, and the shadow prices associated with dfferent physical and logcal resources (cf.
[13]). The analysis and implementation of dynamic routing schemes often use Lagrange muhpliers or shadow
prices for each of the intemai resources of the network, but only certain aggregates of this network detail might
usefully influence charges to users. For example, competition between network providers mi& appear to users
as a choice benveen routes, and averaged congestion measures might motivate a predictable time-of-day element
to charges for dlelay-sensitive connections. Section 4 will consider other ways of providing dynamic feedback on
congestion, for users able to respond to such feedback.
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6. Project CAShMAN
CA$hMAN (Charging and Accounting Schemes in Multiservice ATM Networks [16]) is part of the European
ACTS progranme. It is a three year project aimed at developing, implementing, and assessing chargmg
schemes for A T M networks. It will achieve this by developing an appropriate range of pricing models,
implementing these efficiently in hardware and software, and makmg use of National Host testbed fhcilities (in
the Netherlands, Norway, and Switzerland) to trial these schemes and acquire user feedback. CA$hMAN has
participants fiom acadermc research, from communications hardware and software development companies, and
fromnetwork operators.
Within the first year of CA$hMAN the model described above in section 3 has been implemented, together with
a ‘graduated’ charging mechanism based on a more complex efktive bandwidth model. Charging units have
been developed for CA$hMAN, based on existing policing hardware, that can collect the necessary time, T,and
volume, V,measurements.
Key issues to bse explored in the CA$hMAN experiments include the following [17, 1 81:
Calculation of charges
Where should charges be calculated? In CA$hMAN the hardware measurements of time and volume are passed
to a Manager application which calculates call charges using the selected tariff parameters. Charge information
is passed back to the user in real time using a specially developed interface. For full-scale lmplementation in
commercial nelsvorks we have to consider whether the call charge calculation should be centralised in the
network, what information is transferred between networks, and whether the customer is given immediate
feedback on charge.
Customer response to tanfls
A central issue in the CA$hMAN experiments concems the customer response to the tariff structure:
How complex a tariff will the customer understand or accept?
Is the customer willing or able to make some estimate of traffic characteristics in order to choose from a
range of 0fft:red tariffs?
To what extent is the customer willing to shape his traffic and limit his quality-of-service requirement in
response to usage-sensitive tariffs?
A range of experiments has been designed to evaluate these questions. In the first year of the project these
experiments have been restricted to experimental users of the ATM pilot networks. Early results froin these
expenments show that users are strongly influenced by usage-sensitive charges, and constrain their traffic
demands appropriately.
Connection acceptance
The user’s choice of tariff should convey information on s t a t i s t i d characteristics of the traffic which can be of
assistance to connection acceptance control. The performance of such connection acceptance mechanisms
depends on the quality of this information.
Intelligence to support the user
While the initial CA$hMAN experiments are focussing on the user’s response to tariff structure, it is likely that
in firture the intelligence required to make tariff choices will be provided at least partly in software. How should
this be done, and should such intelligence be provided in the user’s application or terminal equipment, or
elsewhere in the: network?
Acknowledgements
This work was partly supported by the EU ACTS project AC-039 Project CAShMAN). This Project 1s a
collective effort, with many individuals making valuable contributions. We would like to thank all of them, and,
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for comments influencing this paper, we are particularly grateful to Costas Courcoubetis, Emar Edvardsen,
Nicky van Foreest, Rajko Porobic, Marion Raffili, George Stamoulis and Richard Weber.
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