Mass Customization in Wireless Communication Services: Individual Service Bundles and Tariffs

Hong Chen and Louis Pau

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: This paper presents results on mass customization of wireless communications services and tariffs. It advocates for a user-centric view of wireless service configuration and pricing as opposed to present-day service catalog options. The focus is on design methodology and tools for such individual services and tariffs, using altogether information compression, negotiation algorithms, and risk portfolio analysis. We first analyze the user and supplier needs and aspirations. We then introduce the systematic design-oriented approach which can be applied. The implications of this approach for users and suppliers are discussed based on an end-user survey and on model-based calculations. It is shown that users can achieve desired service bundle cost reduction, while suppliers can improve significantly their risk-profit equilibrium points, reduce churn and simplify provisioning.

Keywords: individual tariffs; mass customization; mobile communication services; negotiation; service configuration (search for similar items in EconPapers)
JEL-codes: L63 L96 M (search for similar items in EconPapers)
Date: 2007-08-28
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