Understanding Internet pricing : an evaluation, a classification and an integrated volume-based proposal
Date
2008-04-10T05:56:52Z
Authors
Wang, Jun.
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Abstract
The flourishing development of the Internet and network applications in communications, business, and entertainment, has resulted in resource allocation difficulties among a seemingly unlimited number of users and more complex charging rate determinations. As an important part of the global economy, some of the currently used Internet pricing schemes, such as flat rate charging, lack economic and network efficiency. Furthermore, many cross-disciplinary issues have yet to be resolved in the Internet Pricing research area. After an overview of the representative charging schemes, this work introduces a well defined structure for a complete and comprehensive understanding of Internet pricing schemes. Moreover, an evaluation cube representing eight different perspectives is proposed to examine charging schemes. Based on the evaluation results, classifications of the surveyed charging schemes from the economics and technology perspectives are presented. A new charging scheme is proposed that integrates the advantages of existing schemes. Distance, application type, and congestion are considered in the charging rate determination. The scheme is very flexible as an Internet Service Provider can adjust the priorities of the charging factors to satisfy its own objectives. The new scheme is analyzed and evaluated quantitatively and qualitatively. The results show the design objectives are met, and the scheme could be readily adopted by the Internet Service Providers.