User-provided connectivity (UPC) services offer a possible alternative, orcomplement, to existing infrastructure-based connectivity. A userallows other users to occasionally connect through its "home base" inexchange for reciprocation, or possibly compensation. This service modelexhibits strong positive and negative externalities. A large user basemakes the service more attractive, as it offers more connectivity options toroaming users, but it also implies a greater volume of (roaming) trafficpassing through a user's home base, which can increase congestion. Theseinteractions make it difficult to predict the eventual success of such aservice offering, and in particular how to effectively price it. This paperinvestigates a two-price policy where the first price is an introductory price that expires onceservice adoption reaches a certain level. The paper uses a simplifiedanalytical model to investigate pricing strategies under this policy, and their sensitivity to changesin system parameters. The insight and practicalguidelines this yields are validated numerically under morerealistic conditions.
Date of this Version
pricing, connectivity, user-centric, networks, adoption
Date Posted: 17 January 2012
This document has been peer reviewed.