System Concept and Simulation Model for a Proposed Class of Delay-Tolerant Variably-Priced Network Services [Vol. 6, No. 4, 1998]

System Concept and Simulation Model for a Proposed Class of Delay-Tolerant Variably-Priced Network Services

W.D. Grover
TRLabs,Dept. of Electrical and Computer Engineering,
University of Alberta, Edmonton, Alberta, Canada T6G 2G7
Email: grover_AT_trlabs.ca

J.S. Hayer
Bellcore

Abstract
We describe a system concept for the revenue-producing disposition of surplus capacity at off-peak times in trunking networks. The idea is to approximate a competitive market for distribution of the networks time-varying excess capacity with an optimal pricing strategy controlled by the network. The scheme is intended to allow network operators to stimulate background traffic loads to gain new revenues from otherwise idle time on existing installed resources. The concept is suitable for high volume low priority delay-tolerant or opportunistic applications such as remote backups, software distribution, dispatching batched faxes, disseminating newsgroup updates, updating web page caches or routing tables etc. Background service subscribers are notified in real time of price reductions at off-peak times to elicit additional traffic for the network. Traffic aggregators act on behalf of subscribing organizations or groups of users. The background service is completely subordinate to the conventional tariff-priced on-demand calling services and the variable background pricing merges with the foreground under suitable total load. This paper focuses on the network problem of price setting to continually maximize the price-volume product in a time-varying price-sensitive traffic environment such as this concept implies. A price-stimulated offered traffic environment is simulated in which time of day, price, and hidden demand latency and demand curve characteristics all affect the offered traffic. An optimum strategy is available for the particular traffic model used and the performance of a fuzzy logic price controller is tested against the revenue-optimal strategy. Depending on econometric assumptions for latent traffic demand and price-volume curves, increases in revenue from 4% to 20% are obtained in simulation of a 30 trunk group having a typical daily load pattern.

Keywords: telecommunications, traffic, variable pricing, use of slack capacity

JNSM: Vol. 6, No. 4, 1998 System Concept and Simulation Model for a Proposed Class of Delay-Tolerant Variably-Priced Network Services [Vol. 6, No. 4, 1998]

NOTE: only abstract of paper available on-line

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