Analyzing the Dynamic Data Sponsoring in the Case of Competing Internet Service Providers and Content Providers

With a sponsored content plan on the Internet market, a content provider (CP) negotiates with the Internet service providers (ISPs) on behalf of the end-users to remove the network subscription fees. In this work, we have studied the impact of data sponsoring plans on the decision-making strategies of the ISPs and the CPs in the telecommunications market. We develop game-theoretic models to study the interaction between providers (CPs and ISPs), where the CPs sponsor content. We formulate the interactions between the ISPs and between the CPs as a noncooperative game. We have shown the existence and uniqueness of the Nash equilibrium. We used the best response dynamic algorithm for learning the Nash equilibrium. Finally, extensive simulations show the convergence of a proposed schema to the Nash equilibrium and show the effect of the sponsoring content on providers’ policies.