Pricing Communication Networks

Traditionally engineers devised communication services without reference to how they should be priced. In today's environment pricing is a very complex subject and in practice depends on many parameters of the actual market – including amount of traffic, architecture of the network, technology, and cost. The challenge is to provide a generic service model which accurately captures aspects such as quality and performance, and can be used to derive optimal pricing strategies. Recent technology advances, combined with the deregulation of the telecommunication market and the proliferation of the internet, have created a highly competitive environment for communication service…