Analyzing coalitions in wireless heterogeneous networks and their economic aspects

Abstract

The massive investment that is essential to implement a large area wireless network is one of the significant roadblocks that stops service providers from offering more affordable data services. The fact that the fast evolution of wireless technologies requires frequent updates of hardware and software also leads to higher capital expenditure and operation costs for the providers and subsequently to more expensive data plans for the end users. The implementation of suboptimal pricing schemes in today’s wireless market, which does not consider service level agreements and forces users to pay for both network connectivity and data transfer, is another reason to decrease the overall satisfaction of subscribers. In view of these issues our objective in this thesis is to study the proper pricing methods based on the reality of current market as well as to consider alternative options that can reduce the service costs of wireless providers are our objectives. We study the volume-based pricing which is the dominant method in cellular networks nowadays. We derive the optimal data plan parameters such as the data volume cap, price, and data rate. Considering the cost-reduction possibilities, we prove that a coalition of providers in which they can serve users of each other is a valid alternative that reduces the implementation costs of network expansion. We build our analysis based on the cooperation between heterogeneous providers and we consider the heterogeneity in both technology and service aspects. We avoid the models which consider a coalition of all providers since it forms a monopoly and is prohibited by regulatory entities. Hence, we study models of coalitional structures that include several sets of providers. In this way, users have the option to select their data plan based on the service offered by a coalitional set of providers that can have different technologies in their access network. Concerning the service-oriented heterogeneous networks, we track the directions of payments from the content providers (CP) to the service providers (SP) and finally to the end users and try to modify it based on social fairness. To do so, we analyze several content types based on subscriber usage patterns and we find the ones that can be offered with a different pricing method without causing profit loss to CP or SP. Our goal is to set a coalitional framework between CP and SP that can lead to a free unlimited access to particular content types. We show that such agreements, if set correctly, can increase the profit of CP and SP. Throughout this thesis, the analytical models are verified with numerical examples that are designed to simulate the real world scenarios.

Date	22 Jun 2017
Original language	American English
Awarding Institution	École de technologie supérieure
Supervisor	Zbigniew Dziong (Supervisor) & Wing Cheong Lau (Co-supervisor)