Download - Economics of Shared Data Plans
![Page 1: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/1.jpg)
Economics of Shared Data Plans
Soumya SenCarlee Joe-Wong
Sangtae Ha
![Page 2: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/2.jpg)
Issue: Sustainability
e-commerce
cloud services
m-commerce
GoogleAmazonAppleMicrosoftFacebook
wired
wireless
AT&TVerizonT-MobileSprintComcast
![Page 3: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/3.jpg)
Issue: Demand Growth
![Page 4: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/4.jpg)
Issue: Viability
• Spectrum Crunch• 108% Growth• Data Caps
![Page 5: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/5.jpg)
Trends: Pricing Evolution
![Page 6: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/6.jpg)
Trends: Shared Data Plans
![Page 7: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/7.jpg)
Perspectives & Questions
• Is a shared data plan always better?• How to fairly share data across users?
• How to price shared data plans?• How many shared plans to offer?
Consumers Service Providers
![Page 8: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/8.jpg)
Shared PlansDevice 1 Device 2
• Entertainment & Productivity device
• Child’s & Parent’s device
![Page 9: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/9.jpg)
Shared Plans
• Devices have different marginal value for consumed bandwidth (v1, v2)
• Usage distribution: fi(ci), demand ci
• Different max usage (C1max, C2
max)
Device 1 Device 2
![Page 10: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/10.jpg)
Shared Plans
• Entertainment & Productivity device– v1 < v2, C1
max > C2max
• Child’s & Parent’s device– v1 < v2, C1
max < C2max
Device 1 Device 2
![Page 11: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/11.jpg)
Shared Data Plan Pricing
• Per device fee (by device type): g1, g2
• Bandwidth Caps: B1, B2, Bs
• Tiered (approximates usage pricing $10/GB):– {p1, p2} < ps (in $/GB up to cap)
• Overage fees: {o1, o2} < os (in $/GB above cap)
Devices Monthly Line Access (per device)
Smartphones $40
Basic Phones $30
Jetpack/Netbooks/Notebooks/USBs $20
Tablets $10
![Page 12: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/12.jpg)
Overage Scenarios
• Demand loss above cap• Quality degradation, throttling above cap• Self-restraint by users on lower utility device• α of overage demand is lost
• Usage loss from lower valued (v1) device
![Page 13: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/13.jpg)
3- Stage Model
Assumptions (relaxable): • Continuum of data caps to choose from• Log utility function: Ui=vi log(1+ci)-piBi
Choose between shared and individual
Data plans
Choose the data capfor the chosen plan
Adjust for usage loss(if needed) and
incur overage fees
Demand for data on each device
is realized
Direction of solution
![Page 14: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/14.jpg)
Analysis: Individual Data Plans
• Compute (B1*, B2
*) and (U1*, U2
*)
User utilities:
Expected utility:
![Page 15: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/15.jpg)
Analysis: Shared Data Plan (1)
Relationship between data cap, realized demand, and usage loss in overage regime
c2
c1
(c1, c2)
Case 2:
No demand loss
c2
c1
(c1, c2)
Demand loss
Case 1: c2
c1
(c1, c2)
Demand loss
Case 3:
![Page 16: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/16.jpg)
Analysis: Shared Data Plan (2)• Shared plan allows
adjustments across devices
• Compute Bs*, Us
* in each region and select the best option
• Use E(Us*), E(U1
*+U2* )
to choose shared vs individual data plans
![Page 17: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/17.jpg)
Example Usage Stats
• 19 iPhone, 15 iPads• iPad users: β~(0.348, 0.408)• iPhone users: β~(0.515, 0.191)
![Page 18: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/18.jpg)
Consumer Choice: Non-trivial
Indv. Indv.
Shared
Correct choice of shared or individual plan depends on demand loss in overage regime due to behavioral factors (user’s self-restraint) and technological factors (performance degradation from throttling)
![Page 19: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/19.jpg)
Robustness: Tiered Data Plans
Consumer choice can be even more complicated for tiered data plans
Indv.
Indv.
Shared
Shared
The budget choices are B1 = 0.2, 1 and B2 = 0.5, 1.5 (in GB)
![Page 20: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/20.jpg)
Future Directions
• Is a shared data plan always better?• How to fairly share data across users?
• How to price shared data plans?• What shared data caps to offer?
Consumers Service Providers
![Page 21: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/21.jpg)
“Fair” sharing• Build “fairness” into the system• Allow “priorities”• Use dynamic planning to increase “efficiency”
40%
35%
25% 20%
48%
33%
Alice
Bob
Chris
Chris
![Page 22: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/22.jpg)
Empowering Consumers
Daily allocationby users
+Usage alerts
Fair allocation by apps
+Usage alerts
Set cap. Set priority.
priority=1 Priority=2
ChrisAlice
![Page 23: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/23.jpg)
Trial App GUIs
Personal Usage MonitoringShared Usage Monitoring Shared Usage Prediction
![Page 24: Economics of Shared Data Plans](https://reader036.vdocuments.us/reader036/viewer/2022062811/56816269550346895dd2d6b6/html5/thumbnails/24.jpg)
References• Innovating Access Pricing
– http://www.datami.com
• Industry-academia collaboration– http://scenic.princeton.edu/SDP2012/
• SDP 2013 (Workshop on Smart Data Pricing)– co-located with IEEE INFOCOM 2013, Turin, Italy
• DataWiz (free iOS & Android mobile app)– scenic.princeton.edu/datawiz/
Questions?Thank you!