2 research outputs found
Optimal dynamic pricing strategies for mobile communication networks.
Techniques from engineering, economics and control theory are used in
this thesis to investigate the effectiveness of dynamic pricing for demand
control and capacity optimisation in cellular mobile networks. The scope is
extended to include pricing strategies that can provide a certain target revenue
for the network operator. Algorithms for the application of dynamic pricing in
voice and data networks are suggested. Mathematical models are developed
to predict the effect of dynamic pricing on the network operator's market share
and the overall user demand, including the effect of variable tariffs on user
mobility. The question of setting the optimal tariff for a given system load is
addressed and three dynamic price setting methods suggested. The first,
competition driven ad hoc pricing, is used to identify the most sensitive
parameters in the model, namely the revenue generated and the level of call
blocking in the network. Two further tariffs (linear revenue attainment and
optimal revenue attainment) are then developed for controlling the system and
ensuring optimal behaviour. The tariffs are tested using a seven-cell cellular
model developed with OPNET TM.
Simulation results show that the
performance of the competition driven ad hoc and linear revenue attainment
linear pricing strategies is varied and they lead to either a significant reduction
in the revenue of the network operator or the welfare of users. The optimal
revenue attainment price setting strategy, on the other hand, is shown to be an
effective tool for generating the desired revenue, while decreasing the average
price in the network and increasing the number of successful calls. In addition,
it is suggested that the optimal dynamic pricing strategy could potentially
increase a network operator's market share by up to 10% compared to
traditional pricing policies, thus offering a viable pricing alternative