A constant revenue model for packet switched network
GIIS'09 Proceedings of the Second international conference on Global Information Infrastructure Symposium
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In this paper, we study the influence of QoS pricingstrategy in the future QoS Internet market. We create aBertrand duopoly game model with different pricingschemes: One ISP with flat rate pricing for its QoS serviceand the other ISP with two part tariff, a combined pricingscheme with flat rate and usage-sensitive pricing. Basedon industry survey data, we conduct a simulation of arandom number generation method for consumer demandand Internet access hours. Then, we find an equilibriumpoint of pricing strategy where an ISP with flat ratepricing has higher profit than an ISP with a two-parttariff. Finally, we present an analytical framework for thefuture QoS Internet pricing strategy.