Analysis and Simulation for Pricing Policy of Telecommunication Services |
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Course EE550 - Design and Analysis of Computer Communication Networks Professor Michael Neely Team Member Jui-Hung Chang, Kok Tiong Ee, Chih-Ho Yen Summary In this project, we will use the M/M/¡Û truncation theorem analyze the profit and price policy of a local telecommunication company. The scenario is: various classes of users such as businessmen or teenagers with independent arrival rates. These user classes will be modeled based on the ¡§Pricing Function¡¨ (Price v.s. User Demand). Different unlimited static price will be charged to the classes of users for the different service rates. In general, higher price will lead to lower user demand and thus lower arrival rate. Our system will have constant service capacity and there is a quality guarantee contract between the service provider and the classes of users on the penalty for each blocked service. The variables for users are shown in the below figure. (Note: These variables can be obtained by confidential market survey; in this project, these variables are set arbitrarily.)
Fig-1: User Models and Variables
Through the analysis, we are trying to find the pricing policy to maximize profit. Moreover, we analyze the sensitivity to price, slightly changing the user-demand to price functions and looking at its impact to profits.
In addition to the numerical analysis, we develop an event-driven style simulation program to verify the result of our analysis. Fig-2 shows the architecture our simulation system.
Fig-2: Simulation System Architecture
Realted Documents
Final Report (Here)
