Pricing for IP Networks and Services

Article type: Research Article

Authors: Arabas, Piotr | Kamola, Mariusz | Malinowski, Krzysztof | Malowidzki, Marek

Affiliations: Warsaw University of Technology, Institute of Control and Computation Engineering, Warszawa, Poland

Abstract: The issue of pricing for Internet Protocol (IP) networks and services is addressed. The subject of pricing can be viewed from operational and from marketing perspectives. At the operational (network) level pricing aims at congestion prevention and flow optimization. At the marketing level pricing aims at attaining network operator objectives (profit and market share). The paper presents authors experience in market modeling leading to marketing level price optimization that was the main goal of the project Quality of Service and Pricing Differentiation for IP Services (QOSIPS). One of the major conclusions from QOSIPS is that those two pricing perspectives are now perceived separately, while the key element binding them more and more often is the quality of service guarantees, usually defined in form of service level agreements. The paper focuses on techniques of market modeling, product structure, sales and network utilization. Algorithms related to price-based network flow control employing the notion of utility function, are shortly presented in the part dedicated to operational level pricing, so as to complete the picture.

Journal: Information Knowledge Systems Management, vol. 3, no. 2-4, pp. 153-171, 2002/2003