Evaluation Of Dynamic Pricing In Mobile Communication Systems (original) (raw)
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A Novel Dynamic Pricing Model for the Telecommunications Industry
Advances in Intelligent Systems and Computing, 2015
Telecommunications industry is a highly competitive one where operators' strategies usually rely on significantly reducing minute rate in order to acquire more subscribers and thus have higher market share. However, in the last few years, the numbers of customers are noticeably increasing leading to more stress on the network, and higher congestion rate, i.e. worse quality of service (QoS). Because of this, pricing has emerged as a useful tool for simultaneously limiting congestion, and increasing revenue.
A technique to support dynamic pricing strategy for differentiated cellular mobile services
GLOBECOM '05. IEEE Global Telecommunications Conference, 2005., 2005
With the advent of a multi-operator regime in the sector of cellular mobile services, users became sensitive to the Quality of Service (QoS), and, as a result service providers started offering differentiated services. Each operator shall ensure the promised QoS to every subscriber even during busy hours of a day when the network operates at the maximum load. During off-peak hours the load on the network will decrease. As a result, the network designed to meet the QoS requirement during busy hours of a day will leave a large amount idle resource during off-peak hours of the day. In this scenario, a service provider faces the problem of maximizing revenue while satisfying resource and QoS constraints. A dynamic differentiated pricing strategy (DDPS) for the cellular mobile service is a solution to the above problem. In this paper, we have proposed a DDPS which, to the best of our knowledge, is the first of its kind in the literature. We have compared the performance of our proposed solution with the static differentiated pricing strategies (SDPSs) with respect to revenue earned and average network resource utilization. The experimental results show that our proposed solution provides a substantial improvement over the SDPSs.
Dynamic pricing control in cellular networks
2006
In this paper we present dynamic pricing control for network quality of service (QoS) in cellular networks. Dynamic pricing policies allow the network service providers to charge a cost per time unit depending on the availability of network resources; hence it regulates the arrival rate of calls of service to the network. This implies that network service requirements such as availability, reliability, security, bandwidth, congestion, routing, stability, delays, etc are maintained at an optimum level.
Optimized static pricing approach for revenue maximization in telecommunications
2014 10th International Computer Engineering Conference (ICENCO), 2014
In this paper a new time dependent pricing scheme is proposed for revenue management in mobile calls. The pro posed scheme considers many essential parameters that affect pricing such as time-of-day seasonality, weekday/weekend sea sonality and price demand elasticity for call arrivals and call duration. In this model, each day is partitioned into a number of periods; each period has a price according to the amount of its seasonal traffic. The periods' boundaries as well as the prices for each period are optimized to maximize the revenue, hence obtaining a closed-form formula for the optimal prices. The proposed approach is simple to implement and operate, encour ages the customer demand, and creates simple and predictable fees for customers. The proposed model effectively increases the revenue for real phone calls data and when compared with fJat rate pricing, where a constant price is used, it provides about 5 % gain in revenue.
Dynamic Pricing Scheme for Effective Bandwidth Utilization in Mobile Wimax
International Journal of Computer Applications, 2014
In the next Generation Networks like Mobile WiMAX, it is highly essential to create a market mechanism that would allow the customer to communicate with Network and negotiate a contract based on some QoS parameters like blocking probability, delay, arrival rate, spectral efficiency, resource allocation and price. However, the mechanisms, rather than technical-oriented scheme, that involve the use of economic theories may provide better solutions to accommodate the high demand of mobile services. The purpose of this research work is to propose and validate mathematical model that study the effect of pricing incentives as an additional strategy for encouraging a more efficient usage of limited network resources. A modified efficient dynamic pricing scheme for optimal network resource utilization in Mobile WiMAX network has been developed and validated. The percentage improvement of the Cumulative Revenue (CR) generated by the proposed model over the existing model ranges between 25% and 150% depending on the values of the Price Leveling Factor (PLF). The percentage improvement of the Cumulative Resource Efficiency Index (CREI) generated by the proposed model over the existing model ranges between 6% and 7.1% depending on the values of the Price Leveling Factor (PLF). The proposed scheme proved to generate more revenue per Bandwidth Utilization than the existing model.
Pricing the Volume-Based Data Services in Cellular Wireless Markets
IEEE Transactions on Network and Service Management, 2018
Over the past few years, many major wireless providers restricted their unlimited data plans and replaced them with limited-size fixed-price data packages. While this could be perceived as a disadvantage for customers, it helps the cellular wireless providers to reduce the traffic intensity at their base stations and this leads to a better service quality and higher rates for concurrently connected users. Hence, there is a tradeoff between the data volume and the data rates attributed to the users. To avoid the adverse effect of service inaccessibility, the cellular providers should carefully set the size and pricing of their data packages. Toward this end, the providers need a model that, together with proper market information, would allow to set the best prices for volume-based data and estimate the acceptable quantity of subscribers and their average data rate. In this paper, we propose such a model that quantifies the relationship between pricing and various market/system parameters such as data volume size, user budget, data rate, and service blocking probability. In particular, we formulate a set of revenue optimization problems for different spectrum assignment criteria like shared-carrier and dynamic sub-carrier allocation. Finally, several realistic scenarios are investigated in which the optimal network parameters are computed.
Introducing QoS Profiles in the Pricing of 3G Services
2006 IEEE International Conference on Services Computing (SCC'06), 2006
The deployment of pricing schemes for communication services is driven by the network technologies. QoS is a major factor that affects the choice of a pricing scheme for a given network. In this paper, we explore a pricing scheme that uses service profiles, which define the QoS received from accessing a common resource pool. Through resource sharing between the profiles, maximisation of network resource utilisation is achieved. In this paper, the mathematical model of the proposed pricing scheme is presented, together with QoS evaluation results.
12th International Conference on Parallel and Distributed Systems - (ICPADS'06), 2006
We develop a hybrid partitioning-threshold call admission control algorithm to derive optimal pricing of multiple service classes in mobile wireless networks for revenue optimization with quality of service (QoS) guarantees. Unlike traditional admission control algorithms which make acceptance decisions to satisfy QoS constraints such as the call blocking probability, the hybrid partitioning-threshold admission control algorithm is designed to maximize the revenue earned by the system while satisfying QoS of multiple service classes. We utilize the hybrid call admission control algorithm to analyze a pricing scheme that correlates service demand with pricing, and to derive optimal pricing under which the system revenue is maximized while QoS requirements of multiple service classes are guaranteed.
Congestion-dependent pricing of network services
Networking, IEEE/ACM …, 2000
We consider a service provider (SP) who provides access to a communication network or some other form of on-line services. Users access the network and initiate calls that belong to a set of diverse service classes, di ering in resource requirements, demand pattern, and call duration. The SP charges a fee per call, which can depend on the current congestion level, and which a ects users' demand for calls. We provide a dynamic programming formulation of the problems of revenue and welfare maximization, and derive some qualitative properties of the optimal solution. We also provide a number of approximate approaches, together with an analysis that indicates that near-optimality is obtained for the case of many, relatively small, users. In particular, we show analytically as well as computationally, that the performance of an optimal pricing strategy is closely matched by a suitably chosen static price, which does not depend on instantaneous congestion. This indicates that the easily implementable time-of-day pricing will often su ce. Throughout, we compare the alternative formulations involving revenue or welfare maximization, respectively, and draw some qualititative conclusions. For example, for a limiting case of practical interest, welfare maximization results in a single class-independent price per unit of tra c volume, whereas a revenue maximizer may discriminate between di erent customer classes on the basis of their demand elasticities.