This paper will analyze new improved charging scheme with base price, quality premium and QoS networks involved. Sain and Herpers [5] already attempted to obtain revenue maximization by creating charging scheme of internet. The plan is attempted to solve multiple service networks scheme as an optimization model to obtain revenue maximization using our improved model based on [2] and [5]. The results show that improved model can be solved optimally using optimization tool to achieve better revenue maximization. DOI:  http://dx.doi.org/10.11591/telkomnika.v10i3.623

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An Improved Optimization Model of Internet Charging Scheme in Multi Service Networks

This paper will seek new proposed pricing plans to develop new pricing scheme that serve both customers and maximize the supplier profit as nowadays Internet Service Providers (ISPs) deal with high demand to promote good quality information but only a few pricing plans involve QoS networks. We are going to solve multi bottleneck links in multi QoS Network scheme as an optimization model by comparing two models in multi QoS networks by taking into consideration decision whether to set up base price to be fixed to recover the cost or to be varied to compete in the market and quality premium to be fixed to enable user to choose classes according to their preferences and budget or to be varied to enable ISP to promote certain service. The results were obtained by aid of LINGO 13.0 software application. The results show that our two modified models slightly yield better solution rather than in original problem but with advantages that ISP has options to choose which of two models to be adopted depending on ISP goals in achieving the profit maximization.

http://ddms.usim.edu.my:80/jspui/bitstream/123456789/15429/1/Improved%20models%20of%20internet%20charging%20scheme%20of%20single%20bottleneck%20link%20in%20multi%20QoS%20networks.pdf

Improved Models of Internet Charging Scheme of Single Bottleneck Link in Multi QoS Networks

In a network with quality of service (QoS) support, pricing is an effective means of dealing with congestion control and revenue generation. In the Internet, the needs of the customers and their applications are constantly evolving. An auction based algorithm is the best choice for this environment because it needs minimal a priori information. In this paper, we propose an auction based pricing algorithm which lets customers choose the price as well as the services required, and in which the service provider decides on the admission price threshold and the service level of the differentiated service provided. We then investigate the system's adaptive behavior by simulating it in various environments and situations.

A comparison of auction and flat pricing for differentiated service networks

Internet Service Providers (ISPs) nowadays deal with high demand to promote good quality information. However, the knowledge to develop new pricing scheme that serve both customers and supplier is known, but only a few pricing plans involve QoS networks. This study will seek new proposed pricing plans are offered with multi service multi link networks involved. The multi service multi link Networks scheme is solved as an optimization model by comparing two models in multi QoS networks. The results showed that by fixing the base price and varying the quality premium or varying the base price and quality and setting up the equal capacity link values, ISP achieved the goal to maximize the profit.

The Improved Models of Internet Pricing Scheme of Multi Service Multi Link Networks with Various Capacity Links

The greater numbers of internet users the greater challenge will be tackled by ISP to provide good services but gain maximum profit. By analyzing Cobb-Douglass utility function we will obtain optimal pricing scheme. Wu and Banker analyzed modified Cobb-douglass utility function and obtained optimal model of flat fee and two part tariff for homogen consumers meanwhile we focus on getting optimal pricing scheme model by using original Cobb-Douglass utility function. The first step to conduct this research is by formulating Cobb-Douglass utility function then analyzing that function. The results show that we obtain optimal pricing scheme model for homogenous and heterogeneous consumer cases. The two-part tariff pricing scheme yield better optimal solution rather than flat fee and two-part tariff pricing scheme regarding with homogen consumers and heterogen consumers based on willingness to pay. For heterogeneous consumers based on consumption level, the optimal pricing scheme is on two-part tariff pricing scheme.

Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model

We use pricing as an effective strategy to allocate network resources in an efficient way so as to maximize a service provider's revenue. Among all static and dynamic pricing strategies, an auction approach is a widely proposed decentralized mechanism. We propose a scenario where all clients can bid for their required bandwidth as well as the price they are willing to pay. The service provider decides on the admission price and differentiated service provided for each class. These thresholds also provide a future reference for admitting new flows later.

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Yongpei Guan

Papers

An auction pricing strategy for differentiated service networks