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Economics of Shared Data Plans

Economics of Shared Data Plans. Soumya Sen Carlee Joe-Wong Sangtae Ha. Issue: Sustainability. e-commerce. Google Amazon Apple Microsoft Facebook. m -commerce. c loud services. AT&T Verizon T-Mobile Sprint Comcast. wired. wireless. Issue: Demand Growth. Issue: Viability.

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Economics of Shared Data Plans

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  1. Economics of Shared Data Plans Soumya Sen Carlee Joe-Wong SangtaeHa

  2. Issue: Sustainability e-commerce Google Amazon Apple Microsoft Facebook m-commerce cloud services AT&T Verizon T-Mobile Sprint Comcast wired wireless

  3. Issue: Demand Growth

  4. Issue: Viability • Spectrum Crunch • 108% Growth • Data Caps

  5. Trends: Pricing Evolution

  6. Trends: Shared Data Plans

  7. Perspectives & Questions Consumers Service Providers • How to price shared data plans? • How many shared plans to offer? • Is a shared data plan always better? • How to fairly share data across users?

  8. Shared Plans Device 1 Device 2 • Entertainment & Productivity device • Child’s & Parent’s device

  9. Shared Plans Device 1 Device 2 • Devices have different marginal value for consumed bandwidth (v1, v2) • Usage distribution: fi(ci), demand ci • Different max usage (C1max,C2max)

  10. Shared Plans Device 1 Device 2 • Entertainment & Productivity device • v1 < v2, C1max >C2max • Child’s & Parent’s device • v1 < v2, C1max <C2max

  11. 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)

  12. 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

  13. 3- Stage Model Assumptions (relaxable): • Continuum of data caps to choose from • Log utility function: Ui=vilog(1+ci)-piBi Demand for data on each device is realized Choose between shared and individual Data plans Adjust for usage loss (if needed) and incur overage fees Choose the data cap for the chosen plan Direction of solution

  14. Analysis: Individual Data Plans User utilities: • Compute (B1*, B2*) and (U1*, U2*) Expected utility:

  15. Analysis: Shared Data Plan (1) c2 c2 c2 Case 3: Case 1: Case 2: Relationship between data cap, realized demand, and usage loss in overage regime No demand loss Demand loss Demand loss (c1, c2) (c1, c2) (c1, c2) c1 c1 c1

  16. 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

  17. Example Usage Stats • 19 iPhone, 15 iPads • iPad users: β~(0.348, 0.408) • iPhone users: β~(0.515, 0.191)

  18. Consumer Choice: Non-trivial Shared Indv. Indv. 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)

  19. Robustness: Tiered Data Plans Consumer choice can be even more complicated for tiered data plans Shared • Indv. • Indv. Shared The budget choices are B1 = 0.2, 1 and B2 = 0.5, 1.5 (in GB)

  20. Future Directions Consumers Service Providers • How to price shared data plans? • What shared data caps to offer? • Is a shared data plan always better? • How to fairly share data across users?

  21. “Fair” sharing • Build “fairness” into the system • Allow “priorities” • Use dynamic planning to increase “efficiency” Chris Chris Bob Alice

  22. Empowering Consumers Set cap. Set priority. priority=1 Priority=2 Dailyallocation by users + Usage alerts Alice Chris Fair allocation by apps + Usage alerts

  23. Trial App GUIs Shared Usage Monitoring Shared Usage Prediction Personal Usage Monitoring

  24. 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!

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