Connection management methods for network service providers

Network service providers purchase connection rights from network owners then offer network access to individual users at a price. Under this system the service provider seeks to maximize profit and minimize blocking by properly provisioning (purchasing) and allocating (pricing) network connections. Determining the appropriate amount to provision and allocate depends on accurately estimating user demand, which is problematic due to the unpredictable nature of users and market interactions. This paper introduces user demand estimation techniques required to optimally manage network connections. These methods maximize profit, while maintaining a low blocking probability for each connection. Analytical results are validated using simulation under variable conditions and demonstrate the impact of accurate demand estimation on profit and blocking.