Analyzing the trade-off between investing in service channels and satisfying the targeted user service for Brazilian internet service providers

The computer connection to the Internet is provided by firms known as internet service providers (ISPs). The simplest mode of physical connection is when the users connects to an ISP's service channel by an ordinary telephone line (dial-up). Finding an available channel may not be an easy task, especially during the peak hours of many Brazilian ISPs. This results in a problem for the ISPs, which is how to achieve the most appropriate trade-off between investing in capacity and satisfying the target user service level. This paper analyzes this trade-off based on a three-step approach: (i) determine user arrival and service processes in chosen periods, (ii) select an appropriate queueing model using some simplifying assumptions, and (iii) generate trade-off curves between system performance measures. To illustrate the application of this approach, some results derived from a case study performed at an ISP in São Paulo state are given.