Modification of Wireless Reverse Charging Scheme with Bundling Optimization Issues

This paper attempts to modify the Internet Reverse Charging (IRC) model by adding a bundling optimization model by considering the Cobb-Douglas utility function to manage homogeneous consumer satisfaction and by using the end-to-end delay QoS attribute. The model formed is expected to achieve maximum revenue for the ISP to maximize ISP profits by minimizing internet usage costs for customers and by providing the best quality information services. Previous research focused only on reverse charging scheme without offering bundling strategy to attract the consumers. In fact, the consumer' choices would be the first priority to be taken in designing the good model. Then, modified model is designed based on the usage-based pricing scheme, that charges the amount of internet access by its usage. The modified model is intended to be designed to show that the improvement in previous model with no use of bundling schemes can reduce the profit the ISP. The step taken for designing is then to be formulated into The Mixed Integer Nonlinear Programming (MINLP) problem by using LINGO 13.0 software. The model is then implemented using bandwidth usage data collected in one of the local server. This issue is divided into two cases, namely the case of $\alpha$ (base price) as a parameter and $\beta$ (quality premium) as parameters and variables with sub-case $PQ_{ij}$ (cost changes due to QoS changes) decreases in the usage based pricing scheme. The modification results show that maximum revenue for the ISP is obtained in Case 1 ($\alpha$ and $\beta$, as parameters) and Case 2 ($\alpha$ as parameter and $\beta$ variable), which are divided into 2 sub-cases with the same objective value obtained. It means that by setting $\alpha$ and $\beta$ to be varied when $PQ_{ij}$ decreases, are able to maximize the total cost.