Load Distribution for Telecommunications Networks Using Revenue Management

In this paper we propose a new approach to the problem of routing for telecommunications networks, which is based on the control of the demand for different routes, using a price-based mechanism to segment the users to different categories according to their needs. We study how a service provider can make use of the relation between a user´s quality requirements and the maximum price a user is willing to pay to maximise their income. We develop an approach where the pricing decisions of the service provider are based on characteristics of demand, especially the mean arrival rate of connections with respect to the prices and Q.oS level for each class.