Title :
Profit Maximization Model of Telecom Operators Based on Full Load Theory
Author :
Yang, Na ; Wang, Ning ; Li, Mei
Author_Institution :
Sch. of Econ. & Manage., Beijing Univ. of Posts & Telecommun., Beijing, China
Abstract :
Nowadays, cost reduction has become one of the major profit sources for telecom operators, so how to realize profit maximization has always been a focused issue. Given that the customers have different communication demands at busy times and idle times, taking profit maximization as the goal, this paper first establishes a model based on the full load theory in economic to simulate the operation of telecom operators; and then makes the further research on the equilibrium prices and network demand when telecom operators achieve the profit maximization using the method of comparative static analysis; furthermore, general processes that how the decision variables are derived are given. Finally, the paper analyzes the results of the model and gives the conclusion according to the practical situation.
Keywords :
cost reduction; economics; profitability; telecommunication; cost reduction; full load theory; profit maximization model; telecom operators; Analytical models; Biological system modeling; Communication channels; Economics; Load modeling; Mathematical model; Telecommunications;
Conference_Titel :
Management and Service Science (MASS), 2010 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-5325-2
Electronic_ISBN :
978-1-4244-5326-9
DOI :
10.1109/ICMSS.2010.5576878