Developing a Framework for Future Mobile Data Pricing
Purpose: The revenues for mobile data transmission overtook the revenue of voice calls for the first time in 2014 in the USA. It can be observed that demand for mobile data – largely driven by video and cloud - is increasing exponentially, while overall data revenue is rising only moderately. This...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Technical University of Kosice
2017-07-01
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| Series: | Kvalita Inovácia Prosperita |
| Subjects: | |
| Online Access: | https://www.qip-journal.eu/index.php/QIP/article/view/759 |
| _version_ | 1827867966437326848 |
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| author | Michael Paetsch Peter Dorčák František Pollák Ľubomír Štrba Branislav Kršák |
| author_facet | Michael Paetsch Peter Dorčák František Pollák Ľubomír Štrba Branislav Kršák |
| author_sort | Michael Paetsch |
| collection | DOAJ |
| description |
Purpose: The revenues for mobile data transmission overtook the revenue of voice calls for the first time in 2014 in the USA. It can be observed that demand for mobile data – largely driven by video and cloud - is increasing exponentially, while overall data revenue is rising only moderately. This will lead to insufficient revenues stream to increase investments into mobile networks and ensure quality service. Consequently, hereof network performance will deteriorate sharply. At the heart of the problem is the current global pricing regime of fixed multiple MB/GB bundles, irrespective of time of the day, intensity of usage (e.g. video vs. email) and underlying economic value of the data. A new framework is proposed as to optimize and align network capacity and implicit data value/utility, which is crucial to ensure customer satisfaction and access justice.
Methodology/Approach: The fundamental differences in pricing voice and data in voice and/or data centric networks are analysed in detail. Information has been synthesized as to develop insights into the impact of different devises and type of digital traffic for the overall performance of mobile networks. Based hereupon, a new framework for mobile data has been proposed to address the increasing misalignment between network capacity, usage and underlying data value/utility. Initial solutions have been proposed and discussed.
Findings: While voice calls are easily quantifiable and are largely predictable in its occurrence and network load implications, mobile data traffic shows very large variations depending on type of traffic. While social media messaging by many customers consumes very little capacity, consumption of video streaming by relatively few customers can lead already to network saturation.
Research Limitation/implication: Carriers set prices for a fixed amount of data – irrespective of intensity and time of data traffic - which leads to sharp spiky type of traffic patterns essentially signalling sharp overuse during busy hours coexist with large period of underused times.
Originality/Value of paper: A new framework for proposition building and particularly pricing of mobile data services is provided. |
| first_indexed | 2024-03-12T15:25:42Z |
| format | Article |
| id | doaj.art-582abe3be5f74158bb8d80a9601ec85c |
| institution | Directory Open Access Journal |
| issn | 1335-1745 1338-984X |
| language | English |
| last_indexed | 2024-03-12T15:25:42Z |
| publishDate | 2017-07-01 |
| publisher | Technical University of Kosice |
| record_format | Article |
| series | Kvalita Inovácia Prosperita |
| spelling | doaj.art-582abe3be5f74158bb8d80a9601ec85c2023-08-10T13:37:33ZengTechnical University of KosiceKvalita Inovácia Prosperita1335-17451338-984X2017-07-0121210.12776/qip.v21i2.759Developing a Framework for Future Mobile Data PricingMichael Paetsch0Peter Dorčák1František Pollák2Ľubomír Štrba3Branislav Kršák4University of Economics in Bratislava Faculty of Commerce Department of Services and TourismUniversity of Economics in Bratislava Faculty of Business Management Dolnozemská cesta 1 852 35 BratislavaUniversity of of Presov in Presov Faculty of Management Konstantínova 16 080 01 PresovTechnical University of KosiceTechnical University of Košice Faculty of Mining, Ecology, Process Control and Geotechnologies Department of Geo and Mining Tourism Nemcovej 32 042 00 Košice Purpose: The revenues for mobile data transmission overtook the revenue of voice calls for the first time in 2014 in the USA. It can be observed that demand for mobile data – largely driven by video and cloud - is increasing exponentially, while overall data revenue is rising only moderately. This will lead to insufficient revenues stream to increase investments into mobile networks and ensure quality service. Consequently, hereof network performance will deteriorate sharply. At the heart of the problem is the current global pricing regime of fixed multiple MB/GB bundles, irrespective of time of the day, intensity of usage (e.g. video vs. email) and underlying economic value of the data. A new framework is proposed as to optimize and align network capacity and implicit data value/utility, which is crucial to ensure customer satisfaction and access justice. Methodology/Approach: The fundamental differences in pricing voice and data in voice and/or data centric networks are analysed in detail. Information has been synthesized as to develop insights into the impact of different devises and type of digital traffic for the overall performance of mobile networks. Based hereupon, a new framework for mobile data has been proposed to address the increasing misalignment between network capacity, usage and underlying data value/utility. Initial solutions have been proposed and discussed. Findings: While voice calls are easily quantifiable and are largely predictable in its occurrence and network load implications, mobile data traffic shows very large variations depending on type of traffic. While social media messaging by many customers consumes very little capacity, consumption of video streaming by relatively few customers can lead already to network saturation. Research Limitation/implication: Carriers set prices for a fixed amount of data – irrespective of intensity and time of data traffic - which leads to sharp spiky type of traffic patterns essentially signalling sharp overuse during busy hours coexist with large period of underused times. Originality/Value of paper: A new framework for proposition building and particularly pricing of mobile data services is provided.https://www.qip-journal.eu/index.php/QIP/article/view/759mobile cellular networksspectrumpricingutilization of mobile networkseconomic value |
| spellingShingle | Michael Paetsch Peter Dorčák František Pollák Ľubomír Štrba Branislav Kršák Developing a Framework for Future Mobile Data Pricing Kvalita Inovácia Prosperita mobile cellular networks spectrum pricing utilization of mobile networks economic value |
| title | Developing a Framework for Future Mobile Data Pricing |
| title_full | Developing a Framework for Future Mobile Data Pricing |
| title_fullStr | Developing a Framework for Future Mobile Data Pricing |
| title_full_unstemmed | Developing a Framework for Future Mobile Data Pricing |
| title_short | Developing a Framework for Future Mobile Data Pricing |
| title_sort | developing a framework for future mobile data pricing |
| topic | mobile cellular networks spectrum pricing utilization of mobile networks economic value |
| url | https://www.qip-journal.eu/index.php/QIP/article/view/759 |
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