ABSTRACT
Abstract: Internet service providers (ISPs) face exploding demand from business and consumers for service aspects such as quality-of-service, mobility, geographical reach, and seamless functionality integration. As their service capabilities are stretched thin, they often find it difficult to provide satisfactory services. In this paper, we introduce the notion of topographical leverage in providing Internet services and develop the concept of capacity provision networks (CPNs). A CPN enhances Internet service providers’ service capabilities by pooling all providers’ underused resources and supplying them as needed. Through several industry-specific examples we illustrate the viability and business value of the CPN concept. We further develop a model of business and market forces impacting business decisions to trade and collaborate among the various players in the Internet service industry. The business implications of a CPN are also discussed. In particular, we believe our research should give rise to several innovative business models in the Internet service industry, where the concepts of trading and collaborating as envisioned in CPNs are likely to become predominant in the future.
