Are application domains “customers” of service provider domains, or are app domains “carriers?”
The definition matters, the Phoenix Center for Advanced Legal & Economic Public Policy Studies argues.
If app domains are customers, then a mandated “zero price ” (settlement free interconnection regardless of the volume of traffic exchanged) does not square with traditional common carrier thinking about inter-carrier interconnection, which is volume sensitive.
But if app domains are carriers, instead of customers, common carrier regulation also suggests that a mandatory “zero price” for interconnection also violates traditional pricing logic?
Clearly, the bulk of traffic exchanged by app domains and retail customer domains (app providers the former: communications service providers the latter) is downstream from the content domains rather than upstream from the CSP domains, by about a ratio of6:1, according to Sandvine.