Abstract:
MNOs offer monthly data plans for wireless data services. Users must pay roaming fees for overseas data consumption, as the data cap only applies to domestic data. A new location-flexible service lets users access the domestic data cap abroad for a daily fee.
This paper examines location-flexibility’s economic impact on overseas markets. Monthly traveler tracking makes the overseas market month-variant. Every day, overseas users solve an on-line payoff maximization problem by choosing their J-FCDC. After analyzing the NP-hard off-line J-FCDC problem, we design an on-line strategy with a provable performance guarantee.
We also propose a location-flexible service pricing policy without market statistics. In low-valuation days, location-flexibility encourages users to consume more data, and the MNO benefits from encouraging data consumption through appropriate pricing. Location-flexibility boosts MNO revenue and user payoffs.
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