Allowing multi-hops in cellular networks: an economic analysis

Authors:
Patrick Maillé
Affiliations:
GET/ENST Bretagne, Cesson Sévigné Cedex, France
Venue:
MSWiM '05 Proceedings of the 8th ACM international symposium on Modeling, analysis and simulation of wireless and mobile systems
Year:
2005

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Abstract

Extending the coverage of cellular networks in an ad hoc fashion appears as a promising solution for the future. This paper considers the economic aspects of such an hybrid network, especially focusing on incentives: what subscription discount should be granted to users who accept to transfer traffic with respect to users who refuse it? Does offering such an option improve the net benefit of a wireless Internet access provider?Based on models for user preferences, we establish that allowing multi-hops in cellular networks can actually be profitable to the provider, especially in densed regions, since it permits to install fewer access points to cover a region, and that economy in terms of installation and maintenance costs exceeds the eventual loss in revenue due to fee discounts.