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Recently, the mobile network operators (MNOs) are exploring more time flexibility with the rollover data plan, which allows the unused data from the previous month to be used in the current month. Motivated by this industry trend, we propose a general framework for designing and optimizing the mobile data plan with time flexibility. Such a framework includes the traditional data plan, two existing rollover data plans, and a new credit data plan as special cases. Under this framework, we formulate a monopoly MNOu0027s optimal data plan design as a three-stage Stackelberg game: In Stage I, the MNO decides the data mechanism; In Stage II, the MNO further decides the corresponding data cap, subscription fee, and the per-unit fee; Finally in Stage III, users make subscription decisions based on their own characteristics. Through backward induction, we analytically characterize the MNOu0027s profit-maximizing data plan and the corresponding usersu0027 subscriptions. Furthermore, we conduct a market survey to estimate the distribution of usersu0027 two-dimensional characteristics, and evaluate the performance of different data mechanisms using the real data. We find that a more time-flexible data mechanism increases MNOu0027s profit and usersu0027 payoffs, hence improves the social welfare.

Exploring Time Flexibility in Wireless Data Plans