A Novel Simulation Model for Pricing Different QoS Levels in IP Networks
Vesna Radonjic Djogatovic, Marko Djogatovic · Advances in Electrical and Computer Engineering · 2020
The selection of the appropriate pricing concept is one of the most important business decisions an Internet service provider (ISP) has to make. An efficient pricing concept implies that price reflects the quality of service (QoS) obtained by a service provider. In this paper, we propose four billing scenarios, each with applied user-centric QoS-based pricing concept, which is focused on users' demands, defined through QoS and price requirements, as well as delivered QoS. The main issue of this research is to analyse how much ISP's revenue will vary depending on the applied billing scenario. For this purpose, we propose a novel discrete event simulation model. Тhe proposed simulation model is implemented using a newly created programming library based on the event scheduling strategy. This model can be helpful to an ISP in the process of decision making which billing scenario to choose in order to maximize its revenue. Output parameters obtained through the simulation analysis are ISP's revenue and service prices for different billing scenarios.