Towards pricing mechanisms for delay tolerant services

Abstract

One of the applications of Delay Tolerant Networking (DTN) is rural networks. For this application researchers have argued benefits on lowering costs and overcoming challenging conditions under which, for instance, protocols such as TCP/IP cannot work because their underlying requisites are not satisfied. New responses are required in order to understand the true adoption opportunities of this technology. Constraints in service level agreements and viable alternative pricing schemes are some of the new issues that arise as a consequence of the particular operation mode. In this paper, we propose a novel model for pricing delay tolerant services, which adjusts prices to demand variability subject to constraints imposed by the DTN operation. With this model we also show how important parameters such as channel rental costs, cycle times of providers, and market sensitivities affect business opportunities of operators.