Dynamic Pricing to Maximize Mobile Network Revenue

(Almadar Aljadeed: Case Study)

Abstract

Cellular networks are characterized by a scarcity of resources, particularly bandwidth and frequency spectrum. This leads to frequent and significant congestion. Some solutions were proposed to alleviate the congestion problem with installing new infrastructure. However, these solutions often imply either an increased system complexity or a significant degradation of the quality of service. This paper studies one solution to this problem to modify the way in which the user can access to the network to fit the available resource. This leads to the principle of dynamic pricing. The user behavior affects prices depending on the network usage, where high price during periods of congestion will make some users postpone their calls or shorten them. Also, the user can try to move to another cell to obtain a cheaper price, because the price varies in terms of location of the user in the city or countryside. The proposed solution is able to make a better use of the available bandwidth, and provide a greater revenue to the network operator as well as improving the quality of service to the users.