A New Data Traffic Management Model And Optimal Pricing Strategies For Telecommunication Network

The last decade has seen an explosive growth of mobile data traffic.However,the revenues of mobile broadband carriers do not rise significantly.What is worse,more and more content and application providers deliver Internet service to users over the carriers and reap huge profits without investment of bandwidth building,leaving the carriers only the role of transporting packets.What mobile broadband carriers urgently need is transforming traditional operating strategies.Since competition has been common in mobile network market,a new network management strategy is developed in this thesis,which involves priority-based pricing policy for users and cooperation-based pricing strategy for content providers.Firstly,this paper analyzes the simple network management strategy,which contains users and mobile broadband carriers.After calculating the optimal price for mobile broadband carriers,the paper compares consumer surplus under different strategy situations.Results show that the new network management strategy can increase mobile broadband carriers' revenues but not decrease consumer surplus when the mobile broadband carriers set theirs delay cost at certain level.The thesis extents the model to the market which contains mobile broadband carriers,users and content providers,and proposes a two-stage Stackelberg model to solve the optimal price for mobile broadband carries: 1)the leader game,i.e.,a game between two mobile broadband carriers;and 2)the follower game,i.e.,the select policies of consumers and collaboration strategies of content and providers.The results prove that a stable state exists in the follower game,and Nash Equilibrium is achieved in the leader game.But the Nash Equilibrium is not unique under different parameter space.Finally,this thesis discusses the social wealth optima.Results show that sometimes the carriers make a same choice as social planner,while sometimes the carriers' pricing strategies may deviate from social welfare maximizing.So the social planner should take regulatory policies to reduce the deviation under certain situations.