Policy-based pricing for pervasive services in future heterogeneous wireless access networks

In future generation networks users will be offered different types of services and they will be expected to choose the best-possible connection from different underlying networks. One of the keys for the success of such ubiquitous services is the issue of assigning proper prices for those services. This paper explores a user-oriented pricing approach for next-generation networks where pricing for services will not be governed by long-term agreements but will be based on ad-hoc usage (policy-dependent), short-term agreements and spot-pricing (and payment). Based on the usage, the users will make decisions on what to pay and who to pay for the best service they require. This approach is now possible as a result of a range of evolved broadband wireless access standards and technologies, intelligent agents, autonomic communications, new pricing schemes and policy-based techniques. This new landscape also allows multiple competing Access Providers to dynamically assign prices and poses interesting challenges to regulators. The paper also discusses our thoughts on the mechanisms required to make this approach work.