Bandwidth allocation and pricing for telecommunications network

The pricing of future network services should comparable to the service quality. In this paper we present a packet scheduling scheme which ensures bandwidth as a quality of service (QoS) requirement and optimizes revenue of the network service provider. We derive a closed form formula for updating the adaptive weights of a packet scheduler from a revenue-based optimization problem. The weight updating procedure is fast and independent on any assumption of the connections´ statistical behavior. The algorithm is simulated and compared to constant weights with and without a call admission control (CAC) mechanism. Also, a mechanism for guaranteeing a minimum mean bandwidth for different service classes is presented as supplement to the CAC procedure.