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The growing competition drives the mobile network operators (MNOs) to exploreadding time flexibility to the traditional data plan, which consists of amonthly subscription fee, a data cap, and a per-unit fee for exceeding the datacap. The rollover data plan, which allows the unused data of the previous monthto be used in the current month, provides the subscribers with the timeflexibility. In this paper, we formulate two MNOs' market competition as athree-stage game, where the MNOs decide their data mechanisms (traditional orrollover) in Stage I and the pricing strategies in Stage II, and then usersmake their subscription decisions in Stage III. Different from the monopolymarket where an MNO always prefers the rollover mechanism over the traditionalplan in terms of profit, MNOs may adopt different data mechanisms at anequilibrium. Specifically, the high-QoS MNO would gradually abandon therollover mechanism as its QoS advantage diminishes. Meanwhile, the low-QoS MNOwould progressively upgrade to the rollover mechanism. The numerical resultsshow that the market competition significantly limits MNOs' profits, but bothMNOs obtain higher profits with the possible choice of the rollover data plan.

Duopoly Competition for Mobile Data Plans with Time Flexibility