Eruption of Policy in the Charging Arena

In the early days of mobile Internet, bandwidth was not an issue, so price plans were quite simple, very often expressed in the form of a flat rate or "All you can eat" pricing. As long as capacity was greatly available, this was a convenient and simple way to define a tariff, both for the end-user and the service provider. With the tremendous growth of data traffic observed recently, bandwidth becomes more and more a scarce resource. Consequently, flat rate pricing leads to a minority of heavy users cannibalizing the whole resource, while being subsidized by low users. This is of course not acceptable! It is neither fair for the majority of end-users, nor profitable for the service provider.

Provided by: IARIA Topic: Mobility Date Added: Apr 2012 Format: PDF

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