Networking

QoS-Revenue Tradeoff With Time-Constrained ISP Pricing

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Executive Summary

Usage-based pricing has been recognized as a network congestion management tool. Internet Service Providers (ISPs), however, have limited ability to set time-adaptive usage-price to manage congestion arising from time-varying consumer utility for data. To achieve the maximum revenue, ISP can set its time-invariant usage-price low enough to aggressively encourage consumer's traffic demand. The downside is that ISP has to drop consumer's excessive traffic demand through congestion management (i.e., packet dropping), which may degrade Quality of Service (QoS) of consumer's traffic. Alternatively, to protect consumer's QoS, ISP can set its time-invariant usage-price high enough to reduce consumer's traffic demand, thus minimizing the need for congestion management through packet dropping.

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