A bandwidth pricing model that is attractive to regulators, users, and providers

Bandwidth pricing is a major issue in the telecommunications sector. ´Under pricing´ as well as ´over pricing´ would adversely affect the growth of the sector as a whole. Different prices prevail in both supply-constrained and demand-constrained bandwidth economies. However, the notion of a fair price from the point of view of users as well as providers may be applicable in both the economies. This would, in turn, help the regulators and the investors to judge the overall health of a bandwidth market. In this paper, we proposed a model of bandwidth pricing from the point of view of regulators, users, and providers. We validated this model for a major player in the bandwidth market of a developing country.