Commodity trading of bandwidth

• US 20020004788A1
• Filed: 05/18/2001
• Published: 01/10/2002
• Est. Priority Date: 05/19/2000
• Status: Abandoned Application

• Current Assignee: Corps Of Discovery Patent Holding LLC (Intellectual Ventures LLC)
• Original Assignee: Corps Of Discovery Patent Holding LLC (Intellectual Ventures LLC)
• Inventors: Hanks, Stanley P., Berberian, David Jr., Gros, Thomas D.
• Application Number:
  US09/860,682
• Publication Number:
  US 20020004788A1
• Time in Patent Office: Days
• US Class Current: 705/80
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation
• CPC Class Codes: H04L 41/30 Decision processes by autonomous network management units using voting and bidding

Abstract

A method includes pooling bandwidth between first and second pooling points in a communication system. The pooled bandwidth is commoditized by making available tradeable bandwidth segments having negotiable sizes and characteristics. A transaction between a buyer and a seller for at least one bandwidth segment is initiated, wherein the seller delivers to the buyer bandwidth between the first and second pooling points pursuant to agreed upon terms. The delivered bandwidth is monitored to ensure that the bandwidth is delivered according to the agreed upon terms. A system includes a first pooling point, a second pooling point, a service provisioning system, a cross connection switch, and a quality of service manager. The second pooling point is coupled to the first pooling point and bandwidth is pooled between the first and second pooling points. The pooled bandwidth is commoditized by making available tradeable bandwidth segments having a negotiable size and a determinable quality of service. The service provisioning system is coupled to at least on of the first and second pooling points, and the service provisioning system facilitates a transaction between a buyer and a seller for bandwidth at a contracted for quality of service. The cross connection switch is coupled to at least one of the first and second pooling points, and the cross connection switch executes the transaction between the buyer and seller by enabling delivery of bandwidth between the first and second pooling points at the contracted for quality of service. The quality of service manager is coupled to at least one of the first and second pooling points, and the quality of service manager monitors the delivered bandwidth to ensure that the contracted for quality of service is delivered.

Claims

1. A method, comprising:

pooling bandwidth between first and second pooling points in a communication system;

commoditizing the pooled bandwidth by making available tradeable bandwidth segments having negotiable sizes and characteristics;

initiating a transaction between a buyer and a seller for at least one bandwidth segment, wherein the seller delivers to the buyer bandwidth between the first and second pooling points pursuant to agreed upon terms; and

monitoring the delivered bandwidth to ensure that the bandwidth is delivered according to the agreed upon terms.

2. The method of claim 1, wherein commoditizing the pooled bandwidth comprises making available tradeable bandwidth segments having a determinable quality of service.

3. The method of claim 2, wherein initiating a transaction between a buyer and a seller for at least one bandwidth segment, comprises delivering to the buyer bandwidth between the first and second pooling points at a contracted for quality of service.

4. The method of claim 3, wherein monitoring the delivered bandwidth between the first and second pooling points comprises monitoring the delivered bandwidth to ensure that the contracted for quality of service is delivered.

5. The method of claim 4, further comprising the seller paying liquidated damages to the buyer if the contracted for quality of service is not delivered.

6. The method of claim 1, wherein commoditizing the pooled bandwidth comprises making available tradeable bandwidth segments having capacity sizes that substantially correspond with accepted industry standards.

7. The method of claim 6, wherein the capacity sizes of the tradeable bandwidth segments have a bandwidth granularity of at least a DS-0.

8. The method of claim 6, wherein the capacity size of the tradeable bandwidth segments substantially corresponds with that of a DS-3.

9. The method of claim 1, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the agreed upon terms.

10. The method of claim 1, wherein initiating a transaction between a buyer and a seller for bandwidth comprises initiating the transaction pursuant to a master agreement having standard terms related to purchases and sales of bandwidth.

11. The method of claim 10, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the standard terms in the master agreement.

12. The method of claim 10, wherein the standard terms of the master agreement include a take or pay provision requiring the buyer of the bandwidth to pay the seller for the delivered bandwidth regardless of whether the buyer uses the bandwidth.

13. The method of claim 1, wherein pooling bandwidth between first and second pooling points comprises connecting a plurality of buyers and sellers of bandwidth to at least one of the first and second pooling points.

14. The method of claim 13, wherein initiating a transaction between a buyer and a seller for at least one bandwidth segment comprises interconnecting the buyer and the seller through at least one of the first and second pooling points.

15. The method of claim 1, wherein the agreed upon terms between the buyer and the seller include a take or pay provision requiring the buyer of the bandwidth to pay the seller for the delivered bandwidth regardless of whether the buyer uses the bandwidth.

16. The method of claim 1, wherein the agreed upon terms between the buyer and the seller result in a firm contract that is strictly enforced.

17. The method of claim 16, further comprising the seller paying liquidated damages to the buyer for nonperformance of the firm contract.

18. The method of claim 16, wherein the firm contract between the buyer and the seller includes a take or pay provision requiring the buyer of the bandwidth to pay the seller for the delivered bandwidth regardless of whether the buyer uses the bandwidth.

19. A method, comprising:

pooling bandwidth between first and second pooling points in a communication system;

commoditizing the pooled bandwidth by making available tradeable bandwidth segments having a negotiable size and a determinable quality of service;

initiating a transaction between a buyer and a seller for at least one bandwidth segment, wherein the seller delivers to the buyer bandwidth between the first and second pooling points at a contracted for quality of service; and

monitoring the delivered bandwidth to ensure that the contracted for quality of service is delivered.

20. The method of claim 19, further comprising the seller paying liquidated damages to the buyer if the contracted for quality of service is not delivered.

21. The method of claim 19, wherein commoditizing the pooled bandwidth comprises making available tradeable bandwidth segments having capacity sizes that substantially correspond with accepted industry standards.

22. The method of claim 21, wherein the capacity sizes of the tradeable bandwidth segments have a bandwidth granularity of at least a DS-0.

23. The method of claim 19, wherein commoditizing the pooled bandwidth by making available bandwidth segments having a determinable quality of service comprises:

categorizing the pooled bandwidth into bandwidth segments according to the quality of service exhibited by the pooled bandwidth; and

pricing the bandwidth segments according to their quality of service, wherein bandwidth segments exhibiting a relatively high quality of service trade at a premium over bandwidth segments exhibiting a relatively low quality of service.

24. The method of claim 19, wherein commoditizing the pooled bandwidth by making available bandwidth segments having a determinable quality of service comprises:

comparing the pooled bandwidth against benchmark quality of service guidelines; and

based on the comparison, categorizing the pooled bandwidth into bandwidth segments, wherein bandwidth segments exhibiting a relatively high quality of service are distinguishable from bandwidth segments exhibiting a relatively low quality of service.

25. The method of claim 24, wherein a transaction for bandwidth, between the buyer and the seller, offering a quality of service that exceeds the benchmark quality of service guidelines trades at a premium.

26. The method of claim 24, wherein a transaction for bandwidth, between the buyer and the seller, offering a quality of service that is below the benchmark quality of service guidelines trades at a discount

27. The method of claim 19, wherein initiating a transaction between a buyer and a seller for bandwidth comprises initiating the transaction pursuant to a master agreement having standard terms related to purchases and sales of bandwidth.

28. The method of claim 27, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the standard terms in the master agreement.

29. The method of claim 27, wherein the standard terms of the master agreement include a take or pay provision requiring the buyer of the bandwidth to pay the seller for the delivered bandwidth regardless of whether the buyer uses the bandwidth.

30. The method of claim 19, wherein monitoring the delivered bandwidth between the first and second pooling points to ensure that the contracted for quality of service is delivered comprises:

collecting performance monitoring data related to the quality of service being exhibited by the delivered bandwidth; and

comparing the performance monitoring data against the contracted for quality of service of the bandwidth.

31. The method of claim 30, wherein the performance monitoring data is collected on a predetermined schedule.

32. The method of claim 19, wherein monitoring the delivered bandwidth between the first and second pooling points to ensure that the contracted for quality of service is delivered comprises:

setting quality of service thresholds that are related to the contracted for quality of service of the bandwidth;

monitoring the delivered bandwidth between the first and second pooling points; and

generating a threshold crossing alert if the quality of service threshold is crossed.

33. The method of claim 19, further comprising:

initiating a second transaction between the buyer and a second buyer for the bandwidth;

selling the bandwidth to the second buyer; and

delivering the bandwidth to the second buyer.

34. The method of claim 19, wherein pooling bandwidth between first and second pooling points comprises connecting a plurality of buyers and sellers of bandwidth to at least one of the first and second pooling points.

35. The method of claim 34, wherein initiating a transaction between a buyer and a seller for at least one bandwidth segment comprises interconnecting the buyer and the seller through at least one of the first and second pooling points.

36. A method, comprising:

pooling bandwidth between first and second pooling points in a communication system;

commoditizing the pooled bandwidth by making available tradeable bandwidth segments having a negotiable size and a determinable quality of service;

initiating a transaction between a buyer and a seller for at least one bandwidth segment, wherein the transaction is pursuant to a master agreement having standard terms related to purchases and sales of bandwidth, and the seller delivers to the buyer bandwidth between the first and second pooling points at a contracted for quality of service; and

monitoring the delivered bandwidth to ensure that the contracted for quality of service is delivered.

37. The method of claim 36, further comprising the seller paying liquidated damages to the buyer if the contracted for quality of service is not delivered.

38. The method of claim 36, wherein the standard terms of the master agreement include a take or pay provision requiring the buyer of the bandwidth to pay the seller for the delivered bandwidth regardless of whether the buyer uses the bandwidth.

39. The method of claim 36, wherein pooling bandwidth between first and second pooling points comprises connecting a plurality of buyers and sellers of bandwidth to at least one of the first and second pooling points.

40. The method of claim 39, wherein initiating a transaction between a buyer and a seller for at least one bandwidth segment comprises interconnecting the buyer and the seller through at least one of the first and second pooling points.

41. A bandwidth trading system, comprising:

a first pooling point;

a second pooling point coupled to the first pooling point, wherein bandwidth is pooled between the first and second pooling points, and the pooled bandwidth is commoditized by making available tradeable bandwidth segments having a negotiable size and a determinable quality of service;

a service provisioning system coupled to at least one of the first and second pooling points, wherein the service provisioning system facilitates a transaction between a buyer and a seller for bandwidth at a contracted for quality of service;

a cross connection switch coupled to at least one of the first and second pooling points, wherein the cross connection switch executes the transaction between the buyer and seller by enabling delivery of bandwidth between the first and second pooling points at the contracted for quality of service; and

a quality of service manager coupled to at least one of the first and second pooling points, wherein the quality of service manager monitors the delivered bandwidth to ensure that the contracted for quality of service is delivered.

42. The system of claim 41, further comprising a pooling point administrator coupled to the first and second pooling points over a signaling network.

43. The system of claim 42, wherein the pooling point administrator provides centralized control of the pooling points.

44. The system of claim 42, wherein the pooling point administrator determines when the contracted for quality of service has not been delivered.

45. The system of claim 44, wherein in response to nonperformance of the contracted for quality of service the pooling point administrator notifies the seller of its obligation to pay the buyer liquidated damages.

46. The system of claim 41, further comprising a performance monitoring database wherein the quality of service manager:

stores performance monitoring data in the performance monitoring database;

compares the performance monitoring data against the contracted for quality of service; and

determines whether the contracted for quality of service has been delivered.

47. The system of claim 46, wherein in response to nonperformance of the contracted for quality of service the quality of service manager notifies the seller of its obligation to pay the buyer liquidated damages.

48. The system of claim 41, further comprising a plurality of service providers coupled to at least one of the first and second pooling points.

49. The system of claim 48, wherein in response to the transaction for bandwidth between the buyer and the seller, the cross connection switch interconnects the buyer and the seller through at least one of the first and second pooling points.

50. A method, comprising:

pooling bandwidth between first and second pooling points in a communication system;

purchasing a segment of the pooled bandwidth;

marketing the segment of bandwidth as tradeable bandwidth blocks, wherein the bandwidth blocks are capable of interconnecting the first and second pooling points and have a bandwidth capacity and a time period duration that is less than the segment of bandwidth; and

selling the bandwidth blocks.

51. The method of claim 50, wherein purchasing a segment of pooled bandwidth comprises:

negotiating with a plurality of sellers;

selecting a segment of bandwidth from a seller offering an optimal price; and

purchasing the segment of bandwidth pursuant to a master agreement having standard terms related to purchases and sales of bandwidth.

52. The method of claim 51, wherein selecting a segment of bandwidth from a seller offering an optimal price comprises:

evaluating the credit worthiness of a potential seller; and

selecting a segment of bandwidth from a seller that is an acceptable credit risk and is offering bandwidth at a lowest price.

53. The method of claim 51, wherein selecting a segment of bandwidth from a seller offering an optimal price comprises:

evaluating the quality of service of available bandwidth segments; and

selecting a segment of bandwidth from a seller that is offering bandwidth segments that exhibit an acceptable quality of service, and the seller is offering the acceptable bandwidth at a lowest price.

54. The method of claim 51, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the standard terms in the master agreement.

55. The method of claim 50, wherein selling the bandwidth blocks comprises selling the bandwidth blocks pursuant to a master agreement having standard terms related to purchases and sales of the bandwidth blocks.

56. The method of claim 55, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the standard terms in the master agreement.

57. A method, comprising:

pooling bandwidth between first and second pooling points in a communication system;

taking over a first contract between a buyer and a seller, wherein the first contract is for bandwidth capacity between the first and second pooling points and is characterized by a first duration and a first price;

p1 selling the buyer a second contract for bandwidth capacity between the first and second pooling points, the second contract extending the first duration of the first contract and having a second price that is less than the first price.

58. The method of claim 57, wherein selling the buyer a second contract for bandwidth capacity comprises initiating a transaction pursuant to a master agreement having standard terms related to purchases and sales of bandwidth.

59. The method of claim 58, further comprising the seller paying liquidated damages to the buyer if the bandwidth is not delivered according to the standard terms in the master agreement.

60. A system comprising:

means for pooling bandwidth between first and second pooling points in a communication system;

means for commoditizing the pooled bandwidth by making available tradeable bandwidth segments having a negotiable size and a determinable quality of service;

means for initiating a transaction between a buyer and a seller for at least one bandwidth segment, wherein the seller delivers to the buyer bandwidth between the first and second pooling points at a contracted for quality of service; and

means for monitoring the delivered bandwidth to ensure that the contracted for quality of service is delivered.

61. The system of claim 60, further comprising means for the seller paying liquidated damages to the buyer if the contracted for quality of service is not delivered.

62. The system of claim 60, further comprising:

means for initiating a second transaction between the buyer and a second buyer for the bandwidth;

means for selling the bandwidth to the second buyer; and

means for delivering the bandwidth to the second buyer.