Internet Pricing on Bandwidth Function Diminished With Increasing Bandwidth Utility Function

In this paper we analyze the internet pricing schemes based on bandwidth function diminished with increasing bandwidth utility function with 3 pricing strategies for homogeneous and heterogeneous consumer. The new proposed pricing schemes with this utility function will give the information to the internet service providers (ISP) in maximizing profits and provide better service quality for users. The Models on every type of consumer are applied to the data traffic in Palembang local server. LINGO 11.0 is used to compute the nonlinear programming problem to get the optimal solution. The results showed that for each case based on 3-pricing scheme, ISPs get better profit by choosing all three schemes in consumers type of homogenous case while for heterogeneous cases on willingness to pay and based on demand of the consumers, ISPs can select flat fee scheme to gain higher profit rather than those two other schemes.

[1]  Douglas M. Blough,et al.  A comparison of auction and flat pricing for differentiated service networks , 2004, 2004 IEEE International Conference on Communications (IEEE Cat. No.04CH37577).

[2]  Krzysztof Malinowski,et al.  Price Method and Network Congestion Control , 2010 .

[3]  I. Indrawati,et al.  Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model , 2014 .

[4]  Yongpei Guan,et al.  An auction pricing strategy for differentiated service networks , 2003, GLOBECOM '03. IEEE Global Telecommunications Conference (IEEE Cat. No.03CH37489).

[5]  Frank P. Kelly,et al.  Effective bandwidths at multi-class queues , 1991, Queueing Syst. Theory Appl..

[6]  Frank Kelly,et al.  Notes on effective bandwidths , 1994 .

[7]  Fitri Maya Puspita,et al.  An Improved Optimization Model of Internet Charging Scheme in Multi Service Networks , 2012 .

[8]  Ke Xu,et al.  Internet resource pricing models, mechanisms, and methods , 2011, ArXiv.

[9]  Irmeilyana Irmeilyana.  Generalized Model and Optimal Solution of Internet Pricing Scheme in Single Link under Multiservice Networks , 2014 .

[10]  Rajiv D. Banker,et al.  Best Pricing Strategy for Information Services , 2010, J. Assoc. Inf. Syst..

[11]  F. M. Puspita,et al.  The New Improved Models of Single Link Internet Pricing Scheme in Multiple QoS Network , 2014 .

[12]  Douglas M. Blough,et al.  Determining Differentiated Services Network Pricing Through Auctions , 2005, ICN.

[13]  Yuan Wu,et al.  QoS-revenue tradeoff with time-constrained ISP pricing , 2010, 2010 IEEE 18th International Workshop on Quality of Service (IWQoS).

[14]  Zhenyu Na,et al.  A Threshold Based Handover Triggering Scheme in Heterogeneous Wireless Networks , 2014 .

[15]  Shin-yi Wu,et al.  Optimal Pricing Scheme for Information Services , 2002 .

[16]  Frank Kelly,et al.  Charging and rate control for elastic traffic , 1997, Eur. Trans. Telecommun..

[17]  Muhammad Haikal Satria,et al.  Emergency Prenatal Telemonitoring System in Wireless Mesh Network , 2014 .