Evaluating impacts of oversubscription on future internet business models

Network oversubscription has long been used by Internet Service Providers (ISPs). While high oversubscription ratios can hamper the end user experience, low oversubscription rates may result in an under-utilization of resources. This paper investigates the impacts of oversubscription, both from a technical (OpEx, Energy footprint etc.) and from a value network point of view (Control and Value creation etc.). A multi-parameter sensitivity analysis of a power model is performed to establish that the choice of oversubscription ratio by an ISP can have a serious impact on their operational energy and capital expenditures. As a next step, a set of business model parameters are operationalized in order to evaluate and establish long-term and short-term impacts of network oversubscription on business stakeholders. Key findings include that there is a need to establish a fit between the technical and business gains of network oversubscription, and that is possible only when an ISP leverages its control and influence over its customer base to better understand and anticipate the network usage, thereby being able to promptly adapting the overall network oversubscription ratios.