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On the Guifi.net community network economics

Author
Llorenç Cerdà-Alabern
Roger Baig
Leandro Navarro
Keywords
community networks
Cost sharing
Economics
Internet access cost
Shapley value
Abstract

How costs are distributed among the participants is a key question in the management and viability of shared resources. Although all cost-sharing mechanisms are subjective and thus it is eventually up to the participants to accept one or another, some general criteria seem desirable, such as being budget-balanced and that, in any case, a participant pays more when not cooperating with anyone else. In this paper, we analyse the cost-sharing mechanism that the Guifi.net community network has developed and put in practice to split the transit costs among their more than 20 participants for almost a decade. Our results show that the Guifi.net’s cost-sharing mechanism of the external connectivity, which comprises an equal membership fee for each participant plus a proportional distribution of the remaining costs according to the resource consumption, yields a cost assignment similar to the Shapley value. Our analysis also shows that any alternative to the coalition of all participants entails significant total cost increases and detrimental widespread cost allocation.

Year of Publication
2020
Journal
Computer Networks
Volume
168
Number of Pages
107067
ISSN Number
1389-1286
URL
/sites/default/files/dsg/Guifi_net_Economics.pdf
DOI
https://doi.org/10.1016/j.comnet.2019.107067
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