An auction-based pricing model for performance and revenue optimisation in mobile data services

Network traffic in mobile networks has grown exponentially in recent years which leads to increasing congestion, especially in data services. A pricing network resource could help resolve congestion and potentially increase revenue. However, determining the suitable congestion prices that optimise both performance and revenue of the networks could be challenging. This paper presents an auction–based pricing model that is used as an admission control mechanism for mobile data services. The proposed modelling approach allows mobile operators to improve performance of mobile data services and optimise network revenue by adjusting the reserve prices of the revenue–maximising auction (optimal auction). The paper presents numerical and simulation results illustrating the impact of the auction reserve prices on both network performance and operator's revenue. The methodology for identifying the suitable auction reserve prices for our application is also investigated.