On Mobile User Behavior and Half Time-variant Pricing Mechanism

The demand of broadband access to mobile Internet has experienced rapid growth in recent years, which brings both great opportunities and challenges to the mobile operators. It is the operators’ focus of concern to find optimized pricing mechanism to guide the mobile users behavior and improve their revenue. This paper, with the analysis of mobile user behavior and the influence of price on it, not only proves that only by using time-variant pricing can the operators maximize their revenue, but also gives some methods to guide mobile user behavior. Considering the user’s resistance to the frequent pricing changes, this paper has also examined the feasibility of half time-variant pricing, and shows how to get the loss rate of network revenue. Research results show that half time-variant pricing can effectively mitigate the operator’s revenue loss while maintaining appropriate user acceptability.