Abstract
Confronted with soaring IP traffic demands and unsatisfying revenue prospects, charging and tariffing alternatives are about to regain significant attention in the telecommunications industry. While classical revenue optimization and customer perceptions, i.e., Quality of Experience (QoE), has been largely investigated by now, the understanding of customer valuations, i.e., willingness-to-pay, is still far from being sufficient. Hence, this paper revisits and extends the charging ecosystem by unifying empirically-backed demand and expenditure considerations with supply-side revenue optimization, and pays specific attention to the market introduction of new services, such as quality-differentiated network services. Finally, a series of (partially antagonistic) conclusions for Network Service Providers (NSPs) are derived and discussed.
The research leading to these results has received funding from the European Community’s Seventh Framework Programme (FP7/2007-2013) under grant agreement n \(\mathring{ }\) 248567 for the ETICS project. Additional support from the Austrian government and the City of Vienna in the context of the COMET program, the CELTIC project QUEEN, and from the EU Marie Curie program in the context of the RBUCE WEST International Research Chair NICE is gratefully acknowledged.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Cisco: Cisco Visual Networking Index: Forecast and Methodology, 2011–2016. Whitepaper (2012)
Tuffin, B.: Charging the Internet Without Bandwidth Reservation: An Overview and Bibliography of Mathematical Approaches. Journal of Information Science and Engineering 19, 1–22 (2004)
Pradayrol, A., Levy, D.: European Telecom Operators: 4G – going faster, but where?, Arthur D. Little and Exane BNP Paribas (2013)
Keon, N.J., Anandalingam, G.: Optimal pricing for multiple services in telecommunications networks offering quality-of-service guarantees. IEEE/ACM Transactions on Networking (TON) 11(1) (February 2003)
Haddadi, H., Bonaventure, O. (eds.): Recent Advances in Networking. ACM SIGCOMM, vol. 1. ACM (2013)
Reichl, P., Maillé, P., Zwickl, P., Sackl, A.: A Fixed-Point Model for QoE-based Charging. In: ACM SIGCOMM 2013 Workshop on Future Human-Centric Multimedia Networking (2013)
Kirmani, A., Rao, A.R.: No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality. The Journal of Marketing, 66–79 (2010)
Wahlmueller, S., Zwickl, P., Reichl, P.: Pricing and regulating Quality of Experience. In: 8th EURO-NGI Conference, pp. 57–64 (2012)
Hands, D. (ed.): FP5 Project M3I, IST199911429, Deliverable 15/2 – M3I user experiment results (2002)
Sackl, A., Egger, S., Zwickl, P., Reichl, P.: The QoE Alchemy: Turning Quality into Money. Experiences with a Refined Methodology for the Evaluation of Willingness-to-pay for Service Quality. In: Fourth International QoMEX Workshop (2012)
Homburg, C., Koschate, N., Hoyer, W.D.: Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay. Journal of Marketing, 84–96 (2005)
Zwickl, P., Sackl, A., Reichl, P.: Market Entrance, User Interaction and Willingness-to-Pay: Exploring Fundamentals of QoE-based Charging for VoD Services. In: IEEE Globecom 2013 (2013)
Le Sauze, N., Chiosi, A., Douville, R., et al.: ETICS: QoS-enabled Interconnection for Future Internet Services. Future Network and Mobile Summit (2010)
Festinger, L.: A theory of cognitive dissonance. Standford University Press (1957)
Kahneman, D., Tversky, A.: Prospect Theory: An Analysis of Decision under Risk. Econometrica 47(2), 263–292 (1979)
Oliver, A.: From Nudging to Budging: Using Behavioural Economics to Inform Public Sector Policy. Journal of Social Policy 42, 685–700 (2013)
Sackl, A., Zwickl, P., Egger, S., Reichl, P.: The Role of Cognitive Dissonance for QoE Evaluation of Multimedia Services. In: Workshop on Quality of Experience for Multimedia Communications (QoEMC), Globecom. IEEE (2012)
Reichl, P., Egger, S., Schatz, R., D’Alconzo, A.: The Logarithmic Nature of QoE and the Role of the Weber-Fechner Law in QoE Assessment. In: International Conference on Communications (ICC 2010). IEEE (2010)
Cowan, S.: The Welfare Effects of Third-degree Price Discrimination with Non-linear Demand Functions. Technical report, Oxford University – Department of Economics (2007)
Ivaldi, M., Martimort, D.: Competition under nonlinear pricing. Annales d’Economie et de Statistique, 71–114 (1994)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this paper
Cite this paper
Zwickl, P., Reichl, P., Sackl, A. (2014). The 15 Commandments of Market Entrance Pricing for Differentiated Network Services: An Antagonistic Analysis of Human vs. Market. In: Fischbach, K., Krieger, U.R. (eds) Measurement, Modelling, and Evaluation of Computing Systems and Dependability and Fault Tolerance. MMB&DFT 2014. Lecture Notes in Computer Science, vol 8376. Springer, Cham. https://doi.org/10.1007/978-3-319-05359-2_12
Download citation
DOI: https://doi.org/10.1007/978-3-319-05359-2_12
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-05358-5
Online ISBN: 978-3-319-05359-2
eBook Packages: Computer ScienceComputer Science (R0)