Hybrid data pricing for network-assisted user-provided connectivity

User-provided connectivity (UPC) is a promising paradigm to achieve a low-cost ubiquitous connectivity. In this paper, we study a network-assisted UPC service model, where a mobile virtual network operator (MVNO) enables its subscribers to operate as mobile WiFi hotspots (hosts) and provide Internet connectivity for others. A unique aspect of this service model is that the MVNO offers some free data quota to hosts as reimbursements (incentives) for connectivity sharing. This reimbursing scheme, together with a usage-based pricing, constitute a revolutionary hybrid data pricing-reimbursing scheme, which has not been considered before. We analyze the different impacts of data price and reimbursement on the host´s connectivity sharing decision systematically. Based on this analysis, we further derive the optimal hybrid pricing-reimbursing policy that maximizes the MVNO´s revenue. Our numerical result indicates that by using the proposed hybrid pricing policy, the MVNO can increase its revenue by 20% to 135% under an elastic client demand, and by 20% to 550% under an inelastic client demand, comparing to those achieved under a pricing-only policy.