Hybrid data pricing for network-assisted user-provided connectivity

Abstract

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. © 2014 IEEE.