DocumentCode :
3241158
Title :
Effect of Traffic Shifts on the Economics of Telecommunication Competition
Author :
Baliga, Jayant ; Zalesky, A. ; Zukerman, Moshe
Author_Institution :
Univ. of Melbourne, Melbourne
fYear :
2007
fDate :
24-28 June 2007
Firstpage :
229
Lastpage :
234
Abstract :
We consider a telecommunication competition model involving an incumbent and one or more new entrants who only choose to serve the most profitable traffic. The contribution of this paper is a new analysis that studies the effect of traffic shifts, which are common in the Internet era, on the distribution of market share. Introducing and using a new concept of a shifting network process, we analyze an incumbent network provider adapting its network to this shifting network process with a mixed integer linear program (MILP). In addition, a second MILP is developed to determine the maximum market share obtainable by a single competitor, engaging in so-called "cream-skimming". Further, we investigate the situation wherein multiple competitors compete on specific parts of the network. Numerical results are provided to demonstrate the various market share effects that may occur.
Keywords :
economics; integer programming; linear programming; telecommunication traffic; Internet; MILP; cream-skimming; incumbent network provider; maximum market share; mixed integer linear program; profitable traffic; shifting network process; telecommunication competition economics; traffic shifts effect; Communications Society; Consumer electronics; Costs; Design optimization; Economic forecasting; Environmental economics; Internet; Network topology; Telecommunication traffic; Traffic control;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Communications, 2007. ICC '07. IEEE International Conference on
Conference_Location :
Glasgow
Print_ISBN :
1-4244-0353-7
Type :
conf
DOI :
10.1109/ICC.2007.46
Filename :
4288717
Link To Document :
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