ISSN 1000-1239 CN 11-1777/TP

Journal of Computer Research and Development ›› 2016, Vol. 53 ›› Issue (4): 861-872.doi: 10.7544/issn1000-1239.2016.20151037

Previous Articles     Next Articles

Mobile Data Subsidy Model and Case Study

Su Hui1, Xu Ke1, Shen Meng3, Wang Yong2, Zhong Yifeng1, Li Tong1   

  1. 1Department of Computer Science and Technology, Tsinghua University, Beijing 100084); 2Institute of Economics, Tsinghua University, Beijing 100084); 3School of Computer Science and Technology, Beijing Institute of Technology, Beijing 100081)
  • Online:2016-04-01

Abstract: With the advances of mobile Internet market, many customers use smartphones and tablets to replace desktops as the default Internet accessing tools. The demand for mobile data also increases rapidly. Despite the increasing popularity of mobile computing, exploiting its full potential is still difficult due to the expensive Internet access from mobile clients. The conflict of demand-cost has impeded the development of mobile Internet in some extent. It has become a critical issue that how to design the optimal data allocation mechanism for all participants from the global perspective. In this paper, we investigate a novel data allowance (DA) model which enables seamless collaboration between Internet content providers (CPs) and Internet service providers (ISPs). Taking Alibaba’s real-world deployment as an example, we provide a detailed economic analysis of this business model and reveal the following findings: Firstly, this model enables a more flexible relationship between ISPs and their customers, which can efficiently increase the active online time of mobile users. Secondly, the proposed CP-provided subsidization policy leads to a win-win solution for both CPs and users. Thirdly, the subsidization policy is restrained by some constraints which ensure the validity of the subsidizing process. We believe that our findings provide important insights for CPs and ISPs to design the effective subsidization mechanism for mobile users in the mobile Internet market.

Key words: mobile Internet, network economics, mobile data, subsidization mechanism, game theory

CLC Number: