Research Of Mobile Data Service Pricing Model Based On System Dynamics

The rapid growth of mobile data flow is not only opportunities but also challenges for the telecom operators. Telecom operators commonly face the problems of network unbearable heavy burden, the increasing mobile data flow don’t led appropriate incomes. This is a contradiction in front of telecom operators, with pricing as a control method, can alleviate this contradiction. From the view of the overall telecom industry development, pricing can provide a kind of flexible management mechanism, operators can restrain demand by increasing prices, reducing network congestion, and ensure serve the users who are most willing to charge with high quality service. The price also can be considered as the telecom operators and users’ communication bridge, which encourage users to use the scarce mobile bandwidth more efficient, improve the service value for users, and also make the operator’s value maximization. From the view of the competition between telecom operators in the market, pricing is an important component of the market competition strategy, which is in relation to the operator’s market share and income, pricing strategy for rival parties has the great significance.This paper introduced the system dynamics to the research of mobile data service pricing models, constructing the single operator mobile data service supply & demand model and the dilopoly mobile data service supply & demand competition model. Putting the three popular pricing methods-"according to actual usage of pricing","package type flat-rate pricing" and "unlimited flow type flat-rate pricing" in the two models to do simulation and control analysis. Through deep analysis of the key indicators and game theory, this paper puts forward the pricing model and strategy which promotes the development of the telecom industry and is according with the operator’s maximum benefit, and also provides a reference for further research.This study suggests that using the actual usage fees model, according to the network capacity, as far as possible to stimulate consumption demand, could make more users to use of mobile network more effective, help the operator’s income obtain a faster growth in the market competition, which is an efficient mode. On the other hand, no matter the parties to take radical competition strategy for the market share targets, or to take moderate strategy for the maximization of income targets, for the influence of their market share is small, but will have great influence on their income. So, telecom operators should avoid triggering price war to rob the market share, should take more efforts on the data flow operating, which is more beneficial to their own and the whole telecom industry.