Dynamic Pricing with "Alternatives" for Data Services in Mobile Networks

S. Yaipairoj and F.C. Harmantzis (USA)


Priority pricing, Wireless pricing, Service differentiation, Incentive compatible.


Capacity of wireless data services offered by GPRS and EDGE is critically limited and cannot keep up with the rising demand. The technical approaches taken to allevi ate the problem are not sufficient to encounter a complete range of incoming traffic scenarios. In this paper, we de fine and study analytically a performance model for wire less data services that combines the effect of pricing incen tive as an additional strategy for encouraging a more effi cient usage of limited network resources. We propose the novel pricing scheme, namely dynamic pricing with "Al ternatives", that not only provides the incentive for users to utilize network resource in the way that conforms to the network traffic condition but also potentially gains more user satisfaction by offering pricing preference. The per formance results verify that the new pricing scheme signif icantly improves the system performance and potentially yields users' satisfaction.

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