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
Link To Document