• Journal of Digital Convergence
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• v.10 no.1
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• pp.49-57
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• 2012

The Internet succeeded because of the end-to-end principle which allowed anyone to add functionality to the network. However, as the internet is increasingly becoming the platform for smart IT applications such as VoIP, IPTV, Cloud Computing and Smart Phone, networks are now under increasing strain of traffic congestion and the absence of quality of service insurances. To date, the debate over internet rules has focused on network neutrality rather than network efficiency. This article emphasizes the well-functioning role of market mechanism for the efficient use and further development of the network. To maximize the value of the network, this article proposes a differential treatment to packets based on customer types, and a two-part tariff pricing rule to secure funding to expand and upgrade networks.