Accession Number : ADA613589
Title : Will Smart Pricing Finally Take Off?
Descriptive Note : Technical paper Jan 2013-Jan 2014
Corporate Author : INDIANA UNIV AT BLOOMINGTON
Personal Author(s) : Odlyzko, Andrew
Report Date : Oct 2014
Pagination or Media Count : 32
Abstract : Smart pricing has been the goal of the networking research community and the telecommunications industry for decades. Yet it has also proved remarkably hard to achieve. This paper presents a brief overview of telecommunications economics and technology, and the major changes that are taking place. Special emphasis is placed on the many popular but harmful notions that continue to lead this industry astray, such as that content is king, or that telecom is characterized by high fixed costs. The influence of such factors on advisability of various pricing strategies is then considered. The main conclusion is that flat rates for individual users should be regarded not as a pernicious cancer, but as necessary for the healthy development of wired networks. However, in the wireless arena, there is a mismatch between potential demand and what technology can provide, and this likely means that some forms of not-very-smart pricing will dominate.
Descriptors : *TELECOMMUNICATIONS , COST ANALYSIS , ECONOMICS , NETWORKS , STRATEGY
Subject Categories : Radio Communications
Distribution Statement : APPROVED FOR PUBLIC RELEASE