Optimization of transmission power in competitive wireless networks

Abstract

Competition among providers has become an important issue in current and future wireless telecommunication networks. The providers may operate using different technologies, such as WiFi, WiMAX, UMTS... In a previous work, we have analyzed the price competition among two providers, one operating in only a subdomain of the other, due to smaller distance range. A typical situation is WiFi against WiMAX.We propose here to add a supplementary level of decision on top of that game, making use of its equilibrium: the smaller-range provider plays with its transmission power in order to attract more customers and potentially increase its revenue. We determine the optimal power in the case where energy has a negligible cost, as well as when its cost is linear in transmission power. © Springer-Verlag Berlin Heidelberg 2009.