Abstract
Telecommunications industry is a highly competitive one where operators’ strategies usually rely on significantly reducing minute rate in order to acquire more subscribers and thus have higher market share. However, in the last few years, the numbers of customers are noticeably increasing leading to more stress on the network, and higher congestion rate, i.e. worse quality of service (QoS). Because of this, pricing has emerged as a useful tool for simultaneously limiting congestion, and increasing revenue.
In this paper a dynamic pricing model is proposed for the mobile calls based on a Monte-Carlo simulation that emulates the processes of calls arrivals, calls durations and the effect of price on both. This model is then integrated with a meta-heuristic evolutionary based optimization algorithm to determine the optimal dynamic pricing schemes according to the call parameters. This integrated framework is a novel approach to dynamic pricing that aims at maximizing revenue and enhancing the QoS.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Abdel Aziz, H., Saleh, M., El Gayar, N., El-Shishiny, H.: A randomized model for group reservations in a hotel’s revenue management system. In: Proceedings of INFOS 2008 (2008)
Abdel Aziz, H., Saleh, M., El-Shishiny, H., Rasmy, M.: Dynamic pricing model for hotel revenue management systems. Egyptian Informatics Journal 12(3), 177–183 (2011)
Al-Manthari, B., Nasser, N., Ali, N., Hassanein, H.: Efficient bandwidth management in Broadband Wireless Access Systems using CAC-based dynamic pricing. In: Proceedings of the 33rd IEEE Conference on Local Computer Networks (LCN) (2008)
Andrawis, R., Atiya, A., El-Shishiny, H.: Forecast combination model using computational intelligence/linear models for the NN5 time series forecasting competition. International Journal of Forecasting 27(3), 672–688 (2011)
Andrawis, R., Atiya, A., El-Shishiny, H.: Combination of long Term and short term forecasts, with application to tourism demand forecasting. International Journal of Forecasting 27(3), 870–886 (2011)
Bayoumi, A.E.M., Saleh, M., Atiya, A.F., Aziz, H.A.: Dynamic pricing for hotel revenue management using price multipliers. Journal of Revenue & Pricing Management 12(3), 271–285 (2013)
Chen, F., Ni, R., Qin, X., Wei, G.: A novel CAC-based network pricing scheme for wireless access networks. In: Proceedings of 2010 IEEE International Conference on Wireless Information Technology and Systems (ICWIT) (2010)
Dhake, T., Patane, R., Jagtap, S.: Dynamic call management for congestion control in cellular networks. In: Proceedings of the International Conference & Workshop on Emerging Trends in Technology (ICWET 2011), pp. 946–947 (2011)
El Gayar, N., Saleh, M., Atiya, A., El-Shishiny, H., Zakhary, A., Abdel Aziz, H.: An integrated framework for advanced hotel revenue. International Journal of Contemporary Hotel Management, 2020 Vision for the Hospitality Industry Special Issue 23(1), 84–98 (2011) (Hendorson, Jauncey, Sutton (eds.))
Kabahuma, S., Falowo, O.: Analysis of network operators’ revenue with a dynamic pricing model based on user behaviour in NGWN using JCAC. In: Proceedings of the Southern Africa Telecommunication Networks and Applications Conference (SATNAC) (2010)
Maille, P., Tuffin, B.: Multibid auctions for bandwidth allocation in communication networks. In: Proceedings of INFOCOM: Twenty-third Annual Joint Conference of the IEEE Computer and Communications Societies (2004)
Nawar, M., Atiya, A., Fayed, H.: A Bayesian approach to arrival rate forecasting for inhomogeneous Poisson processes for mobile calls: Submitted for publication (2014)
Pla, V., Virtamo, J., Martínez-Bauset, J.: Optimal robust policies for bandwidth allocation and admission control in wireless networks. Computer Networks 52, 3258–3272 (2008)
Thakurta, P., Bandyopadhyay, S.: A new dynamic pricing scheme with priority based tree generation and scheduling for mobile networks. In: Proceedings IEEE International Advance Computing Conference (IACC) (2009)
Yilmaz, O., Chen, I.: Utilizing call admission control for pricing optimization of multiple service classes in wireless cellular networks. Computer Communications 32, 317–323 (2009)
Zakhary, A., Atiya, A., El-Shishiny, H., El Gayar, N.: Forecasting hotel arrivals and occupancy using Monte Carlo simulation. Journal of Revenue & Pricing Management 10, 344–366 (2011)
Zakhary, A., El Gayar, N., Atiya, A.: A comparative study of the pickup method and its variations using a simulated hotel reservation data. International Journal of Artificial Intelligence and Machine Learning 8, 15–21 (2008)
Matlab SimEvent, http://www.mathworks.com/ (accessed December 2014)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this paper
Cite this paper
Dorgham, K., Saleh, M., Atiya, A.F. (2015). A Novel Dynamic Pricing Model for the Telecommunications Industry. In: Le Thi, H., Pham Dinh, T., Nguyen, N. (eds) Modelling, Computation and Optimization in Information Systems and Management Sciences. Advances in Intelligent Systems and Computing, vol 360. Springer, Cham. https://doi.org/10.1007/978-3-319-18167-7_12
Download citation
DOI: https://doi.org/10.1007/978-3-319-18167-7_12
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-18166-0
Online ISBN: 978-3-319-18167-7
eBook Packages: EngineeringEngineering (R0)