Profit Maximization Model of Telecom Operators Based on Full Load Theory

Nowadays, cost reduction has become one of the major profit sources for telecom operators, so how to realize profit maximization has always been a focused issue. Given that the customers have different communication demands at busy times and idle times, taking profit maximization as the goal, this paper first establishes a model based on the full load theory in economic to simulate the operation of telecom operators; and then makes the further research on the equilibrium prices and network demand when telecom operators achieve the profit maximization using the method of comparative static analysis; furthermore, general processes that how the decision variables are derived are given. Finally, the paper analyzes the results of the model and gives the conclusion according to the practical situation.