A source-destination based dynamic pricing scheme to optimize resource utilization in heterogeneous wireless networks

Mobile wireless resources demand is rapidly growing due to the proliferation of bandwidth-hungry mobile devices and applications. This has resulted in congestion in mobile wireless networks (MWN) especially during the peak hours when user traffic can be as high as tenfold the average traffic. Mobile network operators (MNOs) have been trying to solve this problem in various ways. First, MNOs have tried to expand the network capacity but have still been unable to meet the peak hour demand. Focus has then shifted to economic and behavioral mechanisms. The widely used of these economic mechanisms is dynamic pricing which varies the MWN resources' price according to the congestion level in the MWN. This encourages users to shift their non-critical traffic from the busy hour, when the MWN is congested, to off-peak hours when the network is under-utilized. As a result, congestion of the MWN during the peak hours is reduced. At the same time, the MWN utilization during the off-peak hours is also increased. The current dynamic pricing schemes, however, only consider the congestion level in the call-originating cell and neglect the call-destination cell when computing the dynamic price. Due to this feature, we refer the current dynamic pricing schemes as source–based dynamic pricing (SDP) schemes in this work. The main problem with these schemes is that, when the majority of the users in a congested cell are callees, dynamic pricing is ineffective because callers and not callees pay for network services, and resources used by callers and callees are the same for symmetric services. For example, application of dynamic pricing does not deter a callee located in a congested cell from receiving a call, which originates from a caller located in an uncongested cell. Also, when the distribution of prospective callees is higher than that of callers in an underutilized cell, SDP schemes are ineffective as callees do not pay for a call and therefore low discounts do not entice them to increase utilization. In this distribution, dynamic pricing entices prospective callers to make calls but since their distribution is low, the MWN resource utilization does not increase by any significant margin. To address these problems, we have developed a source-destination based dynamic pricing (SDBDP) scheme, which considers congestion levels in both the call-originating and calldestination cells to compute the dynamic price to be paid by a caller. This SDBDP scheme is integrated with a load-based joint call admission control (JCAC) algorithm for admitting incoming service requests in to the least utilized radio access technology (RAT). The load-based JCAC algorithm achieves uniform traffic distribution in the heterogeneous wireless network (HWN). To test the SDBDP scheme, we have developed an analytical model based on M/M/m/m queuing model. New or handoff service requests, arriving when all the RATs in the HWN are fully utilized, lead to call blocking for new calls and call dropping for handoff calls. The call blocking probability, call dropping probability and percentage MWN utilization are used as the performance metrics in evaluating the SDBDP scheme. An exponential demand model is used to approximate the users' response to the presented dynamic price. The exponential demand model captures both the price elasticity of demand and the demand shift constant for different users. The matrix laboratory (MATLAB) tool has been used to carry out the numerical simulations. An evaluation scenario consisting of four groups of co-located cells each with three RATs is used. Both SDP and the developed SDBDP schemes have been subjected under the evaluation scenario. Simulation results show that the developed SDBDP scheme reduces both the new call blocking and handoff call dropping probabilities during the peak hours, for all callercallee distributions. On the other hand, the current SDP scheme only reduces new call blocking and handoff call dropping probabilities only under some caller –callee distributions (When the callers were the majority in the HWN). Also, the SDBDP scheme increases the percentage MWN utilization during the off-peak for all the caller-callee distributions in the HWN. On the other hand, the SDP scheme is found to increase the percentage MWN utilization only when the distribution of callers is higher than that of callees in the HWN. From analyzing the simulations results, we conclude that the SDBDP scheme achieves better congestion control and MWN resource utilization than the existing SDP schemes, under arbitrary caller-callee distribution

The Role of Responsive Pricing in the Internet

The Internet continues to evolve as it reaches out to a wider user population. The recent introduction of user-friendly navigation and retrieval tools for the World Wide Web has triggered an unprecedented level of interest in the Internet among the media and the general public, as well as in the technical community. It seems inevitable that some changes or additions are needed in the control mechanisms used to allocate usage of Internet resources. In this paper, we argue that a feedback signal in the form of a variable price for network service is a workable tool to aid network operators in controlling Internet traffic. We suggest that these prices should vary dynamically based on the current utilization of network resources. We show how this responsive pricing puts control of network service back where it belongs: with the users.Internet, pricing, feedback, networks

Traffic offloading in future, heterogeneous mobile networks

The rise of third-party content providers and the introduction of numerous applications has been driving the growth of mobile data traffic in the past few years. In order to tackle this challenge, Mobile Network Operators (MNOs) aim to increase their networks' capacity by expanding their infrastructure, deploying more Base Stations (BSs). Particularly, the creation of Heterogeneous Networks (HetNets) and the application of traffic offloading through the dense deployment of low-power BSs, the small cells (SCs), is one promising solution to address the aforementioned explosive data traffic increase. Due to their financial implementation requirements, which could not be met by the MNOs, the emergence of third parties that deploy small cell networks creates new business opportunities. Thus, the investigation of frameworks that facilitate the implementation of outsourced traffic offloading, the collaboration and the transactions among MNOs and third-party small cell owners, as well as the provision of participation incentives for all stakeholders is essential for the deployment of the necessary new infrastructure and capacity expansion. The aforementioned emergence of third-party content providers and their applications not only drives the increase in mobile data traffic, but also create new Quality of Service (QoS) as well as Quality of Experience (QoE) requirements that the MNOs need to guarantee for the satisfaction of their subscribers. Moreover, even though the MNOs accommodate this traffic, they do not get any monetary compensation or subsidization for the required capacity expansion. On the contrary, their revenues reduce continuously. To that end, it is necessary to research and design network and economic functionalities adapted to the new requirements, such as QoE-aware Radio Resource Management and Dynamic Pricing (DP) strategies, which both guarantee the subscriber satisfaction and maximization the MNO profit (to compensate the diminished MNOs' revenues and the increasing deployment investment). Following a thorough investigation of the state-of-the-art, a set of research directions were identified. This dissertation consists of contributions on network sharing and outsourced traffic offloading for the capacity enhancement of MNO networks, and the design of network and economic functions for the sustainable deployment and use of the densely constructed HetNets. The contributions of this thesis are divided into two main parts, as described in the following. The first part of the thesis introduces an innovative approach on outsourced traffic offloading, where we present a framework for the Multi-Operator Radio Access Network (MORAN) sharing. The proposed framework is based on an auction scheme used by a monopolistic Small Cell Operator (SCO), through which he leases his SC infrastructure to MNOs. As the lack of information on the future offered load and the auction strategies creates uncertainty for the MNOs, we designed a learning mechanism that assists the MNOs in their bid-placing decisions. Our simulations show that our proposal almost maximizes the social welfare, satisfying the involved stakeholders and providing them with participation incentives. The second part of the thesis researches the use of network and economic functions for MNO profit maximization, while guaranteeing the users' satisfaction. Particularly, we designed a model that accommodates a plethora of services with various QoS and QoE requirements, as well as diverse pricing, that is, various service prices and different charging schemes. In this model, we proposed QoE-aware user association, resource allocation and joint resource allocation and dynamic pricing algorithms, which exploit the QoE-awareness and the network's economic aspects, such as the profit. Our simulations have shown that our proposals gain substantial more profit compared to traditional and state-of-the-art solutions, while providing a similar or even better network performance.El aumento de los proveedores de contenido de terceros y la introducción de numerosas aplicaciones ha impulsado el crecimiento del tráfico de datos en redes móviles en los últimos años. Para hacer frente a este desafío, los operadores de redes móviles (Mobile Network Operators, MNOs) apuntan a aumentar la capacidad de sus redes mediante la expansión de su infraestructura y el despliegue de más estaciones base (BS). Particularmente, la creación de Redes Heterogéneas (Heterogenous Networks, HetNets) y la aplicación de descarga de tráfico a través del despliegue denso de BSs de baja potencia, las células pequeñas (small cells, SCs), es una solución prometedora para abordar el aumento del tráfico de datos explosivos antes mencionado. Debido a sus requisitos de implementación financiera, que los MNO no pudieron cumplir, la aparición de terceros que implementan redes de células pequeñas crea nuevas oportunidades comerciales. Por lo tanto, la investigación de marcos que faciliten la implementación de la descarga tercerizada de tráfico, la colaboración y las transacciones entre MNOs y terceros propietarios de células pequeñas, así como la provisión de incentivos de participación para todas las partes interesadas esencial para el despliegue de la nueva infraestructura necesaria y la expansión de la capacidad. La aparición antes mencionada de proveedores de contenido de terceros y sus aplicaciones no solo impulsa el aumento del tráfico de datos móviles, sino también crea nuevos requisitos de calidad de servicio (Quality of Service, QoS) y calidad de la experiencia (Quality of Experience, QoE) que los operadores de redes móviles deben garantizar para la satisfacción de sus suscriptores. Además, a pesar de que los operadores de redes móviles adaptan este tráfico, no obtienen ninguna compensación monetaria o subsidio por la expansión de capacidad requerida. Por el contrario, sus ingresos se reducen continuamente. Para ello, es necesario investigar y diseñar funcionalidades económicas y de red adaptadas a los nuevos requisitos, tales como las estrategias QoE-conscientes de gestión de recursos de radio y de precios dinámicos (Dynamic Pricing, DP), que garantizan la satisfacción del abonado y la maximización de la ganancia de operador móvil (para compensar los ingresos de los MNOs disminuidos y la creciente inversión de implementación). Después de una investigación exhaustiva del estado del arte, se identificaron un conjunto de direcciones de investigación. Esta disertación consiste en contribuciones sobre el uso compartido de redes y la descarga tercerizada de tráfico para la mejora de la capacidad de redes MNO, y el diseño de funciones económicas y de red para el despliegue y uso sostenible de las HetNets densamente construidas. Las contribuciones de esta tesis se dividen en dos partes principales, como se describe a continuación. La primera parte de la tesis presenta un enfoque innovador sobre la descarga subcontratada de tráfico, en el que presentamos un marco para el uso compartido de la red de acceso de radio de múltiples operadores (Multi-Operator RAN, MORAN). El marco propuesto se basa en un esquema de subasta utilizado por un operador monopólico de celda pequeña (Small Cell Operator, SCO), a través del cual arrienda su infraestructura SC a MNOs. Como la falta de información sobre la futura carga de red y las estrategias de subasta creaban incertidumbre para los MNO, diseñamos un mecanismo de aprendizaje que asiste a los MNO en sus decisiones de colocación de pujas. Nuestras simulaciones muestran que nuestra propuesta casi maximiza el bienestar social, satisfaciendo a las partes interesadas involucradas y proporcionándoles incentivos de participación. La segunda parte de la tesis investiga el uso de las funciones económicas y de red para la maximización de los beneficios de los MNOs, al tiempo que garantiza la satisfacción de los usuarios. Particularmente, diseñamos un modelo que acomoda una gran cantidad de servicios con diversos requisitos de QoS y QoE, tanto como diversos precios, es decir, varios precios de servicio y diferentes esquemas de cobro. En este modelo, propusimos algoritmos QoE-conscientes para asociación de usuarios, asignación de recursos y conjunta asignación de recursos y de fijación dinámica de precios, que explotan la conciencia de QoE y los aspectos económicos de la red, como la ganancia. Nuestras simulaciones han demostrado que nuestras propuestas obtienen un beneficio sustancial en comparación con las soluciones tradicionales y del estado del arte, a la vez que proporcionan un rendimiento de red similar o incluso mejor.Postprint (published version

Simulation of the behavior of bidders in first-price sealed-bid auctions on communication networks

Auction mechanisms have arisen as very efficient methods for scarce resource allocations. For this reason there is a current research topic based on the application of these economics mechanisms to the design of communication networks, mainly in the provision of QoS to new multimedia services. The main research works are oriented to the assignment and pricing rules, that is, the network resource assigned to the user (the bandwidth on a link, or the route of a traffic demand) and the amount of money it is going to cost to him respectively. However, as far as we know, there is a little research focused in the analysis of the behaviour of the user. Note that an auction is in fact a competition where the user will behave selfishly in order to obtain the greater profit. In this paper we present the first results of a simulator which analyzes the behaviour of the user in an auction over a communication link. They obtain the revenue of the auctioneer that is the network provider, and the resource allocation under different schemes of user behaviour, from a very conservative character up to most risky behaviours