Title :
Pricing mobile data services of different quality levels
Author :
Cho, Moonkyo ; Choi, Mun-Kee
Author_Institution :
Dept. of Manage. Sci., Korea Adv. Inst. of Sci. & Technol., Daejeon, South Korea
Abstract :
Due to advances in mobile technology and the introduction of fourth-generation mobile telecommunications such as Long Term Evolution (LTE) and the corresponding emergence of new services, mobile data services differentiated in terms of the level of quality are expected to work together in the market. We modeled users´ participation choices in mobile data services of different quality levels with a pricing model composed of generalized demand functions over user types and a two-part tariff. Applying survey data from the Korean mobile market, we estimated the level of user demand to evaluate the existing third generation (3G) and LTE tariffs and to forecast the market segmentation between them. The results show that the switch to LTE depends on a combination of its pricing and quality (or data rate) when a fixed fee for 3G service is offered. Moreover, the quality level of LTE is limited by the pricing. We expect our model and related empirical approaches to be useful to analyze and measure the effect of differentiated services for both operators and regulators in the telecommunications market.
Keywords :
3G mobile communication; 4G mobile communication; DiffServ networks; Long Term Evolution; economic forecasting; marketing; pricing; tariffs; telecommunication services; 3G service; Korean mobile market; LTE tariff; Long Term Evolution; data rate; differentiated service; fourth-generation mobile telecommunication; generalized demand function; market segmentation forecast; mobile data service; mobile technology; pricing model; quality level; telecommunications market; third generation; two-part tariff; user demand; user participation choice; user type; Analytical models; Data models; Estimation; Mobile communication; Mobile computing; Pricing; Schedules; 3G; LTE; mobile data service; network pricing; two-part tariff;
Conference_Titel :
ICT Convergence (ICTC), 2012 International Conference on
Conference_Location :
Jeju Island
Print_ISBN :
978-1-4673-4829-4
Electronic_ISBN :
978-1-4673-4827-0
DOI :
10.1109/ICTC.2012.6387152