Telecommunications Planning (eBook)
VIII, 388 Seiten
Springer US (Verlag)
978-0-387-29234-2 (ISBN)
This edited book serves as a companion volume to the Seventh INFORMS Telecommunications Conference held in Boca Raton, Florida, March 7-10, 2004. The 18 papers in this book were carefully selected after a thorough re- view process. The research presented within these articles focuses on the latest methodological developments in three key areas-pricing of telecommunica- tions services, network design, and resource allocation-that are most relevant to current telecommunications planning. With the global deregulation of the telecommunications industry, effective pricing and revenue management, as well as an understanding of competi- tive pressures are key factors that will improve revenue in telecommunica- tions companies. Chapters 1-5 address these topics by focusing on pricing of telecommunications services. They present some novel ideas related to pricing (including auction-based pricing of network bandwidth) and modeling compe- tition in the industry. The successful telecommunications companies of the future will likely be the ones that can minimize their costs while meeting customer expectations. In this context the optimal design/provisioning of telecommunication networks plays an important role. Chapters 6-12 address these topics by focusing on net- work design for a wide range of technologies including SONET, SDH, WDM, and MPLS. They include the latest research developments related to the mod- eling and solving of network design problems. Day-to-day management/control of telecommunications networks is depen- dent upon the optimal allocation of resources. Chapters 13-18 provide insight- ful solutions to several intriguing resource allocation problems.
Contents 6
Preface 8
Chapter 1 PRICING AND RESOURCE ALLOCATION FOR POINT- TO- POINT TELECOMMUNICATION SERVICES IN A COMPETITIVE MARKET: A BILEVEL OPTIMIZATION APPROACH 9
1. Introduction 10
2. Point- to- point pricing problem 12
3. Modeling the problem as a bilevel program 3J General formulation 12
5. Conclusion 22
4. Computational experiments and numerical results 18
Acknowledgments 23
References 23
Chapter 2 PRICING ANALYSIS IN INTERNATIONAL INTERCONNECTED NETWORKS 25
1. INTRODUCTION 25
2. THE COMPETITIVE SCENARIO 27
3. ANALYSIS OF NEGOTIATION FOR INTERCONNECTION 30
4. SIMULATION RESULTS 35
5. CONCLUSIONS 42
Chapter 3 MODELING COMPETITION AMONG WIRELESS SERVICE PROVIDERS 45
Introduction 46
1. Model for the network geometry and agents' decisions 47
2. Convergence to equilibrium. 50
3. Structure of equilibrium. 52
4. Estimation of competitiveness of WAN vs WiFi hotspots. 57
5. Conclusion 60
Appendix 60
Notes 72
References 72
Chapter 4 A SUPPLY NETWORK OF OLIGOPOLY FOR THE ADVANCED INTELLIGENT NETWORK 73
1. INTRODUCTION 73
2. STRUCTURE OF THE PAPER 76
3. LITERATURE REVIEW 78
4. THE BASIC SUPPLY NETWORK 79
5. COMPETITION FROM A NEW APPLICATIONS SUPPLIER 85
6. NUMERICAL INSIGHTS 89
7. FURTHER RESEARCH & CONCLUSIONS
REFERENCES 94
Chapter 5 A NETWORK PROVISIONING SCHEME BASED ON DECENTRALIZED BANDWIDTH AUCTIONS 97
1. Introduction and Related Work 97
2. Model and Provisioning Problem 98
3. Admission Problem and Aggregated Utility Function 100
4. System architecture 101
5. Numerical Results 103
Acknowledgments 107
References 107
Chapter 6 AN OPTIMIZATION- BASED APPROACH TO MODELING INTERNET TOPOLOGY 109
1. The Importance of Internet Topology 110
2. Previous Work on Internet Topology 111
3. Optimization-Based Topology JVlodels 113
4. Towards Generative Models 130
5. Optimization: A Broader Framework 133
6. Conclusion 138
Acknowledgments 138
References 139
Chapter 7 COMPARING SURVIVABLE MULTI- RING CONFIGURATIONS 145
1. INTRODUCTION 145
2. SINGLE AND MULTIPLE RING OPERATION 147
3. EXPERIMENTAL DESIGN 151
4. DISCUSSION AND CONCLUSIONS 156
ACKNOWLEDGEMENTS 158
REFERENCES 158
Chapter 8 THE EFFECT OF HOP LIMITS ON OPTIMAL COST IN SURVIVABLE NETWORK DESIGN 159
1. Introduction 159
2. Model and Algorithm 163
3. Computational Results 168
References 174
Chapter 9 COMPACT MODELS FOR HOP- CONSTRAINED NODE SURVIVABLE NETWORK DESIGN: AN APPLICATION TO MPLS 175
1. INTRODUCTION 176
2. MPLS NETWORK DESIGN MODELS 177
3. COMPUTATIONAL RESULTS 183
REFERENCES 187
Chapter 10 A NOTE ON SEARCH BY OBJECTIVE RELAXATION 189
1. Introduction 189
2. Search by Objective Relaxation 190
3. Relaxation of the Single Facility Installation Problem 192
4. Search by Objective Relaxation as a Stylized Branch- and- Bound Strategy on the Single Facility Installation Model 198
5. Computational Experiments 201
6. Conclusions 206
Appendix: Formulations for LAND Problem Notation 207
A: SOR Subproblem Formulation ( SORLP) 207
B: SFIMIP Formulation 207
C: INCMIP Formulation 208
References 208
Chapter 11 MINIMIZING THE NUMBER OF WAVELENGTH CONVERSIONS IN WDM NETWORKS WITH HYBRID OPTICAL CROSS- CONNECTS 211
1. Introduction and Related Work 212
2. Problem Statement 214
3. Integer Linear Programming Model 215
4. Minimizing the Number of Wavelength Conversions 220
5. Minimizing the Hop Count 225
6. Performance Analysis 226
7. Conclusions 230
References 231
Chapter 12 AN UNINFORMED BEST FIRST SEARCH BASED WAVELENGTH ASSIGNMENT ALGORITHM TO MINIMIZE THE NUMBER OF SONET ADMs IN WDM RINGS 233
1. INTRODUCTION 233
2. PROBLEM DEFINITION 234
3. NOTATIONS AND DEFINITIONS 235
4. RELATED WORK 237
5. PROPOSED STUDY 239
6. PROBLEM FORMULATION 243
7. EXPERIMENTAL SETUP AND RESULTS: 245
8. CONCLUSION 246
REFERENCES 247
Chapter 13 DISTRIBUTED CONTROL OF FLOW ON NETWORKS OF GENERAL TOPOLOGY 249
1. Introduction 249
2. Network Theory 252
3. Nominal Steady- State Routing Solution 264
4. Dynamic Inversion 269
5. Distributed Control Algorithms 271
6. Simulation Results 6.1 Aperiodic Networks 273
Summary 277
Appendix 280
References 280
Chapter 14 A COMBINATORIAL APPROXIMATION ALGORITHM FOR CDMA DOWNLINK RATE ALLOCATION 283
1. Introduction 283
2. Model 285
3. Downlink transmit power feasibility 286
4. The rate optimization problem 289
5. Summary and Further Research 300
Acknowledgments 300
References 300
Chapter 15 RESOURCE ALLOCATION MODEL FOR ESTIMATING NON- UNIFORM SPATIAL LOADS IN CELLULAR WIRELESS NETWORKS 303
1. INTRODUCTION 304
2. THE LOAD ESTIMATION MODEL 309
3. THE ALGORITHM 314
4. THE WIRE-LINE AND CELLULAR WIRELESS MODELS 315
ACKNOWLEDGEMENTS 317
APPENDIX: THE ALGORITHM 317
REFERENCES 319
Chapter 16 HEAVY TRAFFIC ANALYSIS OF AIMD MODELS 321
1. Introduction 322
2. The Model for the Mice 326
3. Many controlled Users, Each With Infinite Backlog 328
4. Extensions of the Model of Section 3 334
5. A Stochastic Process of Finite AIMD Connections 337
Appendix Comparison With a Fluid Model 341
References 342
Chapter 17 UNRELIABLE COMPONENTS WITH FAST REPAIR AND DYNAMIC NETWORK RESTORATION 345
1. Introduction 345
2. Two-state semi-Markov process with mixture repairs 348
3. Time spent in the "down" state 350
4. Number and cost of failures 357
5. Reliable components with gamma repair 359
6. Downtime of a series connection: bounds 359
7. Reference connection model 360
8. Conclusion 363
Appendix 364
References 367
Chapter 18 MULTIPLE SERVICE CLASSES FOR RATE ADAPTIVE STREAMS 369
1. Introduction 370
2. Related Work 371
3. The Model 372
4. Capacity scaling for multiple service classes 374
5. Optimal adaptation policy for multiple service classes 375
6. Asymptotic optimal admission control for multiple service classes 378
7. Case study: multiplexing audio and video streaming clients 379
Simulation parameters 380
Computation results 383
References 387
Appendix 388
Chapter 1 PRICING AND RESOURCE ALLOCATION FOR POINT-TO-POINT TELECOMMUNICATION SERVICES IN A COMPETITIVE MARKET: A BILEVEL OPTIMIZATION APPROACH (P. 1)
Mustapha Bouhtou, Guillaume Erbs and Michel Minoux
Abstract
With the deregulation of the telecommunication markets worldwide, network operators have to develop and offer new services to their clients in order to gain market share. In this context, yield management techniques can be used to optimize tariff computation and resource allocation so that an operator's profit can be maximized. This paper presents a problem of revenue optimization and resource allocation for point-to-point services in a competitive market. The bilevel programming paradigm is used to model the clients' behavior against the tariffs.
Hence, the competition is explicitly taken into account. A mathematical model is introduced. In the process of solving the problem, we focus on exact solution methods using currently available commercial MIP solver. Numerical results are presented illustrating the computational complexity of this approach depending on the data used and the size of the network.
Keywords: telecommunications, revenue management, pricing, resource allocation, bilevel programming, Stackelberg equilibrium
1. Introduction
Many companies in various industries are today successfully using Revenue Management as a means of optimizing their income in a highly competitive environment. These methods were introduced in the late 70's with the deregulation in the airline industry, and aim at trying to offer the right product to the right customer, at the right price, at the right time. This might consist in solving a joint problem of pricing a scarce resource while allocating it optimally. One of the main aspects of the pricing problem is the definition of a market segmentation: customers have different needs and are willing to pay the price for that.
In the airline industry, this translates for example into different perceptions of the length of a flight (one or two legs, etc.), different classes (economic, business, etc.), and seat allocation for each of the defined segments. Another important aspect is to take into account the competition but this makes the problem more difficult to tackle.
As the telecommunications industry has been deregulated, an increasing competition must be accounted for by an operator when setting tariffs for services, in order to keep or gain market share, and the application of Revenue Management is an increasing area of research. The specificities of the telecommunication industry have to be taken into account: an operator can offer different types of services (voice, Internet, mobile, leased lines, interconnection agreements, etc.) and all of these services have specific underlying protocols, network management methods and network topologies.
There is a growing interest on the field of pricing for telecommunication services. An extensive literature review on these subjects is out of the scope of this paper, but the following trends can be observed. There have been numerous papers using game theory in order to achieve an equilibrium between the users' needs and an operator's strategy, for example in the works of Altman and Wynter, 2004 or Basar and Srikant, 2002.
Also, many have proposed schemes to price network services in order to avoid congestion and regulate traffic, for example MacKie-Mason and Varian, 1993 or Kelly, 1997, Kelly et al., 1998.
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