An economic analysis of wireless network infrastructure sharing

Liang Zheng, Jiasi Chen, Carlee Joe-Wong, Chee Wei Tan, Mung Chiang

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

5 Scopus citations

Abstract

Internet service providers (ISPs) struggle to invest in upgrading their networks to catch up with growing mobile data demand, while users have to face significant data overage fees. Pooling ISPs' network infrastructures can potentially enable better user experience and lower prices. For example, Google recently launched a cross-carrier MVNO (mobile virtual network operator) data plan called Project Fi, where users' devices can automatically access either of two partner cellular networks or any available open WiFi network. We consider the economic impact of cross-carrier MVNOs on the mobile data market. We begin by analyzing a network selection strategy that optimizes cross-carrier users' costs. We then study ISPs' behavior, deriving the prices that partner ISPs charge the cross-carrier MVNO and that the cross-carrier MVNO charges its end users. Although the cross-carrier MVNO may lose money from selling data, it can offset this loss with side revenue, e.g., advertisement revenue when users consume more content. We derive conditions under which the cross-carrier MVNO achieves a profit and its users reduce their costs. Finally, we use a real-world network quality dataset to simulate users' network selection behavior and demonstrate the benefits of the ISP competition brought by the cross-carrier MVNO.

Original languageEnglish (US)
Title of host publication2017 15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9783901882906
DOIs
StatePublished - Jun 27 2017
Event15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017 - Paris, France
Duration: May 15 2017May 19 2017

Publication series

Name2017 15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017

Other

Other15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017
CountryFrance
CityParis
Period5/15/175/19/17

All Science Journal Classification (ASJC) codes

  • Control and Optimization
  • Modeling and Simulation
  • Computer Networks and Communications

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    Zheng, L., Chen, J., Joe-Wong, C., Tan, C. W., & Chiang, M. (2017). An economic analysis of wireless network infrastructure sharing. In 2017 15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017 [7959885] (2017 15th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2017). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.23919/WIOPT.2017.7959885