Next-Generation Strategic Business Model for the U.S. Internet Service Providers: Rate-Based Internet Subscription

Charles C. Willow
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Charles C. Willow: Monmouth University, USA

International Journal of Interdisciplinary Telecommunications and Networking (IJITN), 2009, vol. 1, issue 3, 31-41

Abstract: The (information digital) network bandwidth and its usage through Internet subscription, by far, is perhaps the only uni-modal commodity provided to today’s consumers at a flat rate. Regardless of his/her actual bandwidth usage, a consumer is charged a uniform subscription fee by the Internet Service Providers (ISP). Meanwhile, the ISPs have a considerable stake in the overall infrastructure which supports the local perimeters of the Internet. This article presents a rigorous statistical analysis with the objective of determining the optimal billing or pricing policy for the ISPs of the U.S. on the basis of the proposed ‘variable subscription-rate’ business model. Two leading global consumer profiles were selected for data comparison on a cardinal scale; NYC, NY, U.S.A. and Seoul, South Korea.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jitn00:v:1:y:2009:i:3:p:31-41

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