A Constant Revenue Model for Telecommunication Networks

  • Authors:
  • Hapsara R. Sukasdadi;Pramode K. Verma

  • Affiliations:
  • ou.edu;ou.edu

  • Venue:
  • ICNICONSMCL '06 Proceedings of the International Conference on Networking, International Conference on Systems and International Conference on Mobile Communications and Learning Technologies
  • Year:
  • 2006

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Abstract

It is well known that the quality of service provided by a telecommunication network as measured by the probability of blocking decreases rapidly when the incident traffic exceeds the design limits of the network. A higher probability of blocking results in reduced throughput and loss of revenue for the service provider. This paper presents a mechanism that introduces priority in a telephone system with the objective of providing a defined grade of service to priority traffic carrying a higher price tag. The nonpriority traffic carries a lower price tag and a lower grade of service. The proposed pricing scheme maintains the overall revenue associated with the network at a constant level over a wide range of incident traffic.