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Optimal pricing for multiple services in telecommunications networks offering quality-of-service guarantees

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2 Author(s)
Keon, N.J. ; Cox Sch. of Bus., Southern Methodist Univ., Dallas, TX, USA ; Anandalingam, G.

We consider pricing for multiple services offered over a single telecommunications network. Each service has quality-of-service (QoS) requirements that are guaranteed to users. Service classes may be defined by the type of service, such as voice, video, or data, as well as the origin and destination of the connection provided to the user. We formulate the optimal pricing problem as a nonlinear integer expected revenue optimization problem. We simultaneously solve for prices and the resource allocations necessary to provide connections with guaranteed QoS. We derive optimality conditions and a solution method for this class of problems, and apply to a realistic model of a multiservice communications network.

Published in:

Networking, IEEE/ACM Transactions on  (Volume:11 ,  Issue: 1 )