This paper considers the problems of Internet congestion and delays from an economic viewpoint, and proposes a solution that properly aligns the economic incentives .for both users and providers. As currently structured, economic incentives do not promote efficient usage. Furthermore, current structure does not provide incentive for service providers to increase capacity, and does not allow them to provide the better quality: service that many users would be willing to pay for. We develop a properly incentivized economic scheme and an implementation strategy, taking into account the operational details of the medium and the realities of the market. The performance of the proposed plan is analyzed according to queuing theory, producing promising results.
