• ETRI Journal
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• v.27 no.1
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• pp.64-74
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• 2005

Traditional Internet pricing schemes are coming under continual pressure to adapt to, and encourage, a changing mix of Internet applications and consumer usage patterns. Much research effort over the last decade has been focused on developing more efficient and attractive charging schemes. However, none of the proposed models has been widely deployed. This raises questions regarding the inhibiting factors and missing pieces that make pricing the Internet such a challenge. In this paper, we discuss the problems with current Internet pricing schemes, review the history of Internet pricing research over the last ten years, and summarize the key features and motivations of the most significant models. We develop a novel visual approach to comparing and evaluating such schemes using a three-dimensional (3D) metric encompassing technical efficiency, economic efficiency, and social impact. We address and discuss the important factors that have inhibited the deployment of the reviewed models and suggest productive areas of focus for future Internet pricing research.

• The Transactions of the Korea Information Processing Society
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• v.6 no.11S
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• pp.3350-3355
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• 1999

Modeling for the Internet resource is important to use of limited resource efficiently. Also, the modeling could guide how we can approach the Internet problems. The many studies of price mechanism to internalize the externality, to decrease the externality from congestion, and to use the Internet resource efficiently, are widely going on. The represent styles for Internet pricing are usage-based pricing(UBP) and flat-rat pricing(FRP) and the FRP could prefers for the beginning stage of Internet introduce. The purpose of this study is to examine the efficiency of Internet pricing mechanism based on flat-rate pricing, both consumer and producer side.

• Journal of Korea Technology Innovation Society
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• v.8 no.3
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• pp.1139-1156
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• 2005

The explosive growth in wireless networks and Internet services has created considerable demand for mobile Internet services based on the mobile phone. Mobile Internet has become the new business model in telecommunication market, therefore the open network policy for mobile Internet has been formulated and implemented by the government in Korea. In spite of the open network policy for mobile Internet, there has been no systematic analysis of the various interconnection issues, including pricing, in mobile Internet network. This paper aims to suggest the interconnection pricing methods for mobile Internet network by reviewing the current pricing models for various communications services, and adapting them to mobile Internet communications circumstances. Results of this paper can be used as a guideline for government policy directions and management decision making after the introduction of the open network policy for mobile Internet.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.37 no.7B
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• pp.550-564
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• 2012

In this work we propose a new pricing scheme for the wireless Internet services over WiMAX system. First, let us review the characteristics of wireless network which is based on multi-hop relay WiMAX system. Next, we show why usage-based and QoS-aware pricing scheme is needed in the wireless Internet. After that, we propose a theoretical model for the price of multimedia services called a DAP (DiffServ-aware pricing) scheme for the WiMAX multimedia network which takes into account the consumed radio resource of WiMAX system as well as the supported QoS in the IP backbone network. Finally, we present explicit formulae for the packet price, price of consumed radio resource, and price of consumed bytes.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.28 no.11B
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• pp.1007-1015
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• 2003

In this Paper, we propose a method of determining the price for the elastic traffic in the current or future Internet services. First, we investigate the behavior in the consumption of bandwidth of elastic traffic in IP network. Next, we propose a new method to relate the bandwidth usage with the pricing for the elastic traffic, which is based partially or fully on the usage rate of the network bandwidth. Next, we propose an optimal charging function for elastic traffic, which is applicable to any Internet services. Finally, we will illustrate the implication of the work via simple numerical experiments.

• Journal of the Institute of Electronics Engineers of Korea TC
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• v.39 no.6
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• pp.19-19
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• 2002

In this paper the authors explore the effect of bandwidth sharing to the utility of the customer for the best-effort Internet services and draw a basis for the pricing principle in Internet Protocol networks. Especially, we investigate the behavior of a customer′s utility in case an arbitrary amount of additional bandwidth is allowed to each customer for the elastic traffic, which is the typical example of the non-real time Internet data traffic. After drawing the utility curve, which will be proved to follow the concave curve, we will apply it to the pricing of Internet traffic. Finally, via numerical experiments, we will illustrate the validity and implication of the proposed method.

• Journal of the Institute of Electronics Engineers of Korea TC
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• v.39 no.6
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• pp.277-284
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• 2002

In this paper the authors explore the effect of bandwidth sharing to the utility of the customer for the best-effort Internet services and draw a basis for the pricing principle in Internet Protocol networks. Especially, we investigate the behavior of a customer's utility in case an arbitrary amount of additional bandwidth is allowed to each customer for the elastic traffic, which is the typical example of the non-real time Internet data traffic. After drawing the utility curve, which will be proved to follow the concave curve, we will apply it to the pricing of Internet traffic. Finally, via numerical experiments, we will illustrate the validity and implication of the proposed method.

• Korean Management Science Review
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• v.20 no.1
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• pp.89-102
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• 2003

With the progress of Internet and e-commerce, there have been many researches on the market efficiency of the Internet markets using real price data. Contrary to the common expectations by many economists, most of the previous researches have fatted to prove that the Internet market is more efficient than the conventional market. This paper empirically analyzes the pricing behavior of Internet and conventional retailers in South Korea. We have collected real price data on CDs and TVs from various types of retailers, from which we have analyzed three aspects of pricing behavior : price level, price change over time, and price dispersion across the retailers. We have found that the average prices of CDs and TVs at the Internet retailers are lower than those at the conventional retailers. We have also found that there is a close association between the behaviors (e.g., magnitude and timing of changes) of TV prices at the Internet retailers and those at the conventional retailers. It has been observed that the range of the CD prices at the internet retailers is less than a half of the range at the conventional retailers, which can be considered as an evidence of a relatively stronger price competition at the Internet market compared with the conventional market.

• Management & Information Systems Review
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• v.9
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• pp.65-80
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• 2002

As the growth of Internet business, many web sites have been developed their own Internet business strategies. Yet, many web sites have difficulties to make profit. In this paper, an economic model is developed to analyze web sites' quality and pricing strategies when they initiate their services as free services and develop advertising services and other charged services. By analyzing the economic model, optimal quality and prices was found. And by analyzing the optimal strategy, I found that web sites should properly decide their market share on initial customer. Finally, the importance of web sites' productivity to make profit is emphasized.

• Korean Management Science Review
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• v.26 no.1
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• pp.21-35
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• 2009

There is a controversy on Internet pricing, flat-rate vs. usage-based. This study gives a comparative analysis between flat-rate and two-part tariff which is realistic alternative of usage-based pricing. In a basic economic model, two-part tariff based on ISP's cost structure satisfies allocative efficiency and relatively expand the number of subscribers. But the characteristics of Internet service like consumers' uncertainty on cost, measurement cost of traffic and network externality induce increase of cost or decrease of marginal utility. The analysis shows that small impact of these can make flat-rate more efficient.