Dynamic Price Discovering Models for Differentiated Wireless Services

Heterogeneous subscriber base with wide range of wireless services makes the wireless service market more challenging for a service provider (SP). This challenge is related to the revenue model of the SP, where pricing policy plays a central role. The pricing policy should be such that an SP will recover the investment while keeping the desired level of customer satisfaction. An ideal pricing policy should be less complex and be able to price the service close to the worth, a subscriber attached to it. This calls for dynamic price discovering models for differentiated wireless service. In this paper, we have proposed auction based price discovering models like uniform pricing auction and discriminatory pricing auction for dynamic pricing of differentiated wireless services. We have compared their performances with flat-pricing scheme for differentiated wireless services, which is quite popular in the wireless domain. Simulation results show that auction based models have a potential to replace the traditional flat pricing