Last call for the buffet: Economics of cellular networks

Jeremy Blackburn, Rade Stanojevic, Vijay Erramilli, Adriana Iamnitchi, Konstantina Papagiannaki

Research output: Chapter in Book/Report/Conference proceedingConference contribution

12 Citations (Scopus)

Abstract

Voice and data traffic growth over the last several years has become a major challenge for cellular operators with a direct impact on revenues, infrastructure investments, and enduser performance. The economics of these operators depend on various incentives used to attract users in the form of unlimited, buffet-like voice/sms/data packages. However, our understanding of the e•ects of user behavior under these offerings on operator revenues/costs remains poor. Using two years of detailed usage information of • 1 million users across three services, voice, sms and data, combined with payment and cost information, we study how user behavior a•ects the economics of cellular operators. We discover that around 20% of the users consume more resources than what they pay for and hence are non-profitable. In addition to the individual user behavior, we study how the user interactions in the call graph a•ect the operator's revenues and cost, drawing on tools from social network analysis. We develop a framework that incorporates both the individual and social user behavior for studying how volume caps influence the revenues and the traffic costs. Using this framework we empirically show that volume caps can increase the difference between the revenues and the traffic costs of the studied operator by a factor of 2, while a•ecting only 16% of the existing user base.

Original languageEnglish
Title of host publicationMobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking
Pages111-121
Number of pages11
DOIs
Publication statusPublished - 2013
Externally publishedYes
Event19th Annual International Conference on Mobile Computing and Networking, MobiCom 2013 - Miami, FL, United States
Duration: 30 Sep 20134 Oct 2013

Other

Other19th Annual International Conference on Mobile Computing and Networking, MobiCom 2013
CountryUnited States
CityMiami, FL
Period30/9/134/10/13

Fingerprint

Economics
Costs
Electric network analysis

Keywords

  • Cross-subsidization
  • Network e?ects
  • User behavior

ASJC Scopus subject areas

  • Software
  • Hardware and Architecture
  • Computer Networks and Communications

Cite this

Blackburn, J., Stanojevic, R., Erramilli, V., Iamnitchi, A., & Papagiannaki, K. (2013). Last call for the buffet: Economics of cellular networks. In MobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking (pp. 111-121) https://doi.org/10.1145/2500423.2500441

Last call for the buffet : Economics of cellular networks. / Blackburn, Jeremy; Stanojevic, Rade; Erramilli, Vijay; Iamnitchi, Adriana; Papagiannaki, Konstantina.

MobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking. 2013. p. 111-121.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Blackburn, J, Stanojevic, R, Erramilli, V, Iamnitchi, A & Papagiannaki, K 2013, Last call for the buffet: Economics of cellular networks. in MobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking. pp. 111-121, 19th Annual International Conference on Mobile Computing and Networking, MobiCom 2013, Miami, FL, United States, 30/9/13. https://doi.org/10.1145/2500423.2500441
Blackburn J, Stanojevic R, Erramilli V, Iamnitchi A, Papagiannaki K. Last call for the buffet: Economics of cellular networks. In MobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking. 2013. p. 111-121 https://doi.org/10.1145/2500423.2500441
Blackburn, Jeremy ; Stanojevic, Rade ; Erramilli, Vijay ; Iamnitchi, Adriana ; Papagiannaki, Konstantina. / Last call for the buffet : Economics of cellular networks. MobiCom 2013 - Proceedings of the 19th Annual International Conference on Mobile Computing and Networking. 2013. pp. 111-121
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