Last days of the free ride? The consequences of settlement‐based interconnection for the Internet

Tracks the evolution of Internet interconnection and charging arrangements, drawing comparisons with telecommunication carriers’ arrangements. Focuses on how pricing arrangements could change ISP relationship’s nature from peer‐ to hierarchy‐based systems. Spotlights Internet basics and differences between telecoms and Internet pricing systems. Concludes that because of ISP, free riders and non‐explicit service subsidies, days are numbered.