Dynamic pricing for connection-oriented services in wireless networks

In this paper, we deal with dynamic pricing strategies for connection-oriented services in wireless systems. Dynamic pricing policies allow the network operator to charge a cost per time unit depending on the network usage. In this way, the users behavior can be regulated and the network management is significantly improved. We model the user demand and the call duration as functions of the service price. By using standard Markovian techniques to represent the system evolution, we devise an optimal linear pricing scheme, which can be easily computed and controlled. When compared with a flat-rate policy, where a constant price for the network services is fixed, the proposed solution is able to provide a better quality of service to the users as well as a greater revenue to the network operator. For example, when eight radio channels are available and the traffic load is equal to 0.8, we obtain a 25% improvement in the network revenue with respect to the flat-rate policy, while the blocking probability is halved