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Journal of Network and Systems Management

, Volume 14, Issue 2, pp 279–312 | Cite as

A Novel Approach to Charge for IP Services with QoS Support

  • Dario Di Sorte
  • Mauro FemminellaEmail author
  • Gianluca Reali
Article
  • 73 Downloads

If the Internet is to become a network supporting differentiated application and transfer services, advanced architectures must be deployed to efficiently support hard Quality of Service (QoS) and usage-based charging. In this paper we present a novel pricing scheme for IP services with guaranteed quality. Our approach is built on the basis of the virtual delay, which is a novel, simple and effective QoS index that describes an advanced IP service. We propose a model to compute the virtual delay from a purely technical point of view, taking into account not only guaranteed performance, but also traffic and system parameters. We then analyze the sensitivity of both the virtual delay and the tariff towards the involved parameters, taking into account both the users’ benefit and the operators’ income. We also extend the pricing model to make it dependent on service demand. Finally, we also present an economic analysis, the aim of which is to establish a model to set the QoS level and the relevant price, taking into account revenue, social fairness, and service availability.

KEY WORDS:

QoS index  usage-based charging service demand adaptive system price setting 

Notes

ACKNOWLEDGEMENTS

The authors sincerely thank the anonymous referees for their constructive suggestions and comments that have largely contributed to the improvement of the quality of this paper. This work has been co-funded by the European Union in the framework of the IST project SIMPLICITY and by the Italian Ministry of Education, University, and Research (MIUR) within the FIRB project PRIMO.

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Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

  • Dario Di Sorte
    • 1
  • Mauro Femminella
    • 1
    Email author
  • Gianluca Reali
    • 1
  1. 1.Department of Information and Electronic Engineering (DIEI)University of PerugiaPerugiaItaly

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