Pricing multicast communication: A cost-based approach

Multicast and unicast traffic share and compete for network resources. A cost-based approach to multicast pricing, based on accurate characterization of multicast scalability, will facilitate the efficient and equitable resource allocation between traffic types. Through the quantification of link usage, this paper establishes a multicast scaling relationship: the cost of a multicast distribution tree varies at the 0.8 power of the multicast group size. This result is validated with both real and generated networks, and is robust across topological styles and network sizes. Since multicast cost can be accurately predicted given the membership size, there is strong motivation to price multicast according to membership size. Furthermore, a price ceiling should be set to account for the effect of tree saturation. This tariff structure is superior to either a purely membership-based or a flat-rate pricing scheme, since it reflects the actual tree cost at all group membership levels.