Optimal resource reservations to provide quality-of-service guarantee in M2M communications

Machine-to-Machine (M2M) communications characterize a huge number of devices and small data transmission, which render admission control and resource allocation two key components to guarantee similar quality of service (QoS) for homogeneous devices. In view of this, we propose a pricing model based on option pricing and auction, aiming to guarantee the required QoS (i.e., throughput in this study) in the successive reserved time slots. We also introduce the concept of TotalPayment, referring to the price paid by the device when entering a M2M network, based on which we further suggest the optimal value of TotalPayment and its corresponding optimal range of strike price. The combination of QoS guarantee, admission control and market modelling in M2M network is an innovative business concept.