Smart Data Pricing in 5G Systems

doi:10.1017/9781316771655.023

22 - Smart Data Pricing in 5G Systems

from Part III - Network Protocols, Algorithms, and Design

Published online by Cambridge University Press: 28 April 2017

Carlee Joe-Wong ,

Liang Zheng ,

Sangtae Ha ,

Soumya Sen ,

Chee Wei Tan and

Mung Chiang

Edited by

Vincent W. S. Wong ,

Robert Schober ,

Derrick Wing Kwan Ng and

Li-Chun Wang

Show author details

Carlee Joe-Wong: Affiliation:
Carnegie Mellon University, USA
Liang Zheng: Affiliation:
Princeton University, USA
Sangtae Ha: Affiliation:
University of Colorado at Boulder, USA
Soumya Sen: Affiliation:
University of Minnesota, USA
Chee Wei Tan: Affiliation:
The City University of Hong Kong, Hong Kong
Mung Chiang: Affiliation:
Princeton University, USA
Vincent W. S. Wong: Affiliation:
University of British Columbia, Vancouver
Robert Schober: Affiliation:
Friedrich-Alexander-Universität Erlangen-Nürnberg, Germany
Derrick Wing Kwan Ng: Affiliation:
University of New South Wales, Sydney
Li-Chun Wang: Affiliation:
National Chiao Tung University, Taiwan

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Summary

Introduction

The rapid deployment of fourth generation (4G) Long Term Evolution (LTE) standards in wireless networks has taken place against the backdrop of an enormous increase in user demand for mobile data. Indeed, Cisco estimates that demand for mobile data grew by 74% in 2015, and predicts an eightfold increase in demand by 2020 [1]. This increase in demand has strained the capacity of even LTE networks, and has made the development of fifth generation (5G) wireless networks both difficult and important. While the LTE and IEEE 802.11 standards continue to evolve, promising an expansion in cellular network capacity, purely technological solutions may not be sufficient for meeting 5G's stated goals of supporting 1–10 Gbps connections in the field and a 10- to 100-fold increase in the number of connected devices [2, 3].

Internet service providers (ISPs) looking to meet these 5G standards are exploring a number of possible solutions that aim to integrate and co-optimize networks, devices, and applications [2]. In this chapter, we investigate smart data pricing (SDP), an approach that addresses 5G challenges as well as broader changes in the ISP ecosystem. Smart data pricing focuses on the prices that end users pay for consuming data on cellular and other types of networks. By changing these prices, we can influence users’ demands for different types of mobile data, thus allowing ISPs to improve their network performance by offloading or shifting traffic away from congested times.

SDP can help ISPs achieve their 5G performance goals while avoiding some of the costs of upgrading to new wireless standards. Deploying 5G networks will require significant upfront expenses [4], with the US Federal Communications Commission (FCC) chairman Tom Wheeler admitting that

While the FCC has taken many steps over the years and is still working to promote competition among network service providers, the fact remains that the financial barriers to building these networks are formidable, and most American consumers have few or no choices when it comes to this service.

SDP has a direct effect on ISPs’ revenues, which can help to offset these development costs. Moreover, different types of pricing can induce more robust ISP competition for users, with ISPs using prices to attract users away from their competitors.

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Type: Chapter
Information: Key Technologies for 5G Wireless Systems , pp. 478 - 500

DOI: https://doi.org/10.1017/9781316771655.023 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2017

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