Assessing Network Service Profitability: Modeling From Market Science Perspective

Network service providers regularly conduct network planning and upgrade processes to keep their businesses profitable. The effectiveness of a network upgrade/planning decision is intrinsically tied to the ability of a provider to retain and grow its customer population. This paper examines the crucial linkage between network performance, customer satisfaction and profitability of network service, and presents an analytical modeling approach from market science perspective. We derive a generalized forecasting model that projects service profitability from the underlying network service infrastructure and the subscriber population. Through simulation studies and analysis, we show how such approach captures key factors and trends influencing service profitability and how it can significantly improve current network planning and upgrade processes.