• DocumentCode
    7532
  • Title

    Profit Maximization in Femtocell Service with Contract Design

  • Author

    Chih-Yu Wang ; Hung-Yu Wei

  • Author_Institution
    Grad. Inst. of Commun. Eng., Nat. Taiwan Univ., Taipei, Taiwan
  • Volume
    12
  • Issue
    5
  • fYear
    2013
  • fDate
    May-13
  • Firstpage
    1978
  • Lastpage
    1988
  • Abstract
    Most service providers offer an unlimited data service plan under a flat, fixed-rate contract to meet the huge demand. However, because service quality and user experience can vary dramatically in wireless communications, such a contract design is unable to provide equal service quality for all users, which greatly limits the profit potential of service providers. As a result, mobile industries look to femtocell technology to improve service quality and increase profit by attracting customers. Meanwhile, differentiated contracts for different types of users also show great potential for profit increase. In this paper, we investigate unlimited data service plans in terms of enhancements from both femtocell systems and differentiated contracts. The incentive compatibility (IC) issue in differentiated contract design is considered under the overlay macrocell-femtocell system in both split-spectrum and shared-spectrum models. The profits under optimal differentiated contracts, with and without the IC condition are compared to traditional flat fee contracts, and numerical results show that optimal differentiated contracts indeed generate more profits and serve more users.
  • Keywords
    contracts; femtocellular radio; quality of service; IC; contract design; femtocellular service; femtocellular technology; flat fixed-rate contract; incentive compatibility; mobile industry; optimal differentiated contracts; overlay macrocell-femtocellular system; profit maximization; quality of service; service providers; shared-spectrum models; split-spectrum model; unlimited data service plan; wireless communications; Femtocell; contract design; incentive compatible; profit;
  • fLanguage
    English
  • Journal_Title
    Wireless Communications, IEEE Transactions on
  • Publisher
    ieee
  • ISSN
    1536-1276
  • Type

    jour

  • DOI
    10.1109/TWC.2013.032513.111789
  • Filename
    6493534