Auctioning telecommunications bandwidth with guaranteed quality of service

In this paper, we present an auction mechanism for obtaining prices for different classes of telecommunications service with guaranteed quality of service (QoS). We model the problem as a nonlinear integer program, and use optimality conditions to direct our search for both centralized optimal results, and a mechanism for setting up an auction. Further, we examine multiple services, each with different QoS requirements including delay and packet loss, resource requirements including buffer and bandwidth needs, and origin-destination addresses. At the end, our methodology yields simple rules/tables for obtaining prices and resource allocations for these multiple "commodities."