Impact of price on mobile subscription and revenue

This research demonstrates a technique to formulate price in mobile networks based on cost and demand, something that is not fully considered by operators who tend to be influenced by the market. We have analysed the impact of access and usage price on the subscription to a service. We show that a pricing strategy based on provisioning cost and (nonlinear) demand has potential to increase both the subscription and revenue to an operator. With real–world data from an Indian operator, we show that by applying our technique the revenue can be increased by 40 per cent, while also benefiting the customer.