An Analysis of Coalition-Competition Pricing Strategies for Multi-Operator Mobile Traffic Offloading using Bi-objective Heuristics

Abstract

In a competitive market relationships between telecommuni- cations operators serving simultaneously over a certain geographical area are diverse and motivated by very different business strategies and goals. Such relationships ultimately yield distinct pricing portfolios depending on the contractual affiliation of the user being served. Furthermore a key role in the last decade is the concept of tethering (connection sharing) which, when controlled by the operator, may help alleviating the con- sumption of network resources in densely populated scenarios. In this work we investigate the application of bi-objective heuristics for the de- sign of Pareto-optimal network topologies leading to an optimal Pareto between the revenue of the incumbent operators in the scenario and the quality of service degradation experienced by the end users as a result of tethering. Based on computer simulation this work unveils that such a Pareto-optimal set of topologies is strongly determined by the market relationships between such operators.