Allowing multi-hops in cellular networks: an economic analysis

ABSTRACT

Extending the coverage of cellular networks in an ad hoc fashion appears as a promising solution for the future. This paper considers the economic aspects of such an hybrid network, especially focusing on incentives: what subscription discount should be granted to users who accept to transfer traffic with respect to users who refuse it? Does offering such an option improve the net benefit of a wireless Internet access provider?Based on models for user preferences, we establish that allowing multi-hops in cellular networks can actually be profitable to the provider, especially in densed regions, since it permits to install fewer access points to cover a region, and that economy in terms of installation and maintenance costs exceeds the eventual loss in revenue due to fee discounts.

REFERENCES

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INDEX TERMS

Primary Classification:
  C. Computer Systems Organization
  C.2 COMPUTER-COMMUNICATION NETWORKS
      C.2.1 Network Architecture and Design
          Subjects: Wireless communication

General Terms:
Design, Economics, Performance

Keywords:
ad hoc and hybrid networks, connectivity, pricing