PRICING FOR MOBILE DATA Sangtae Ha Princeton University Joint work - - PowerPoint PPT Presentation

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PRICING FOR MOBILE DATA Sangtae Ha Princeton University Joint work - - PowerPoint PPT Presentation

TUBE: TIME DEPENDENT PRICING FOR MOBILE DATA Sangtae Ha Princeton University Joint work with: Soumya Sen, Carlee Joe-Wong, Youngbin Im, Mung Chiang 2 (Mobile) Data Explosion Mobile data growing at 78% annually 2.4 billion mobile users


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TUBE: TIME DEPENDENT PRICING FOR MOBILE DATA

Sangtae Ha Princeton University Joint work with: Soumya Sen, Carlee Joe-Wong, Youngbin Im, Mung Chiang

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(Mobile) Data Explosion

Mobile data growing at 78% annually 2.4 billion mobile users worldwide, 260 million US mobile data users by 2017

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Driving Forces

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Mobile Video Cloud Sync Data-hungry Apps High-res Devices A Perfect Storm

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Industry Moves: US ISPs

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AT&T throttles unlimited iPhone users (July 2011) 9 AT&T starts $10/GB

  • verage fee for

smartphone data plans (June 2010) 6 Comcast caps data at 250 GB (August 2008)2

Wireless Wireline

Introduction of Data Caps

Verizon eliminates new unlimited smartphone plans (July 2011) 8

Elimination of Unlimited Data Plans Introduction of Usage-based penalties

T-Mobile starts data caps and throttling penalty (May 2011) 7 AT&T caps U-verse to 250 GB and DSL to 150 GB with a $10 penalty for an additional 50 GB (May 2011) 4 Time-Warner trials data caps in Texas (June 2008)1 AT&T starts throttling wireline users (April 2011) 3 Verizon AT&T introduce shared data plans with unlimited voice and text (June 2012) 12 Verizon to eliminate unlimited data plans (May 2012) 11 No unlimited plans

  • ffered for iPad LTE

(March 2012) 10 Comcast moves towards tiered usage- based billing (May 2012) 5

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But Not Heavy All the Time

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How to leverage the peak-valley differential? Average demand < 30% Peak demand > 99%

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Opportunities

Time Elasticity: Opportunities

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Time Elasticity

Volume

Streaming videos, Gaming Texting, Weather, Finance Email, Social Network updates Software Downloads Movies & Multimedia downloads, P2P Cloud

Pricing Survey: http://arxiv.org/abs/1201.4197

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Contributions

  • 1. An architecture and a fully functional

system for offering TDP for mobile data

  • 1. User behavior models and optimized

price computation

  • 1. A realistic evaluation with real users

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TDP Overview

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Internet Prices Traffic

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TUBE Theory

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Feedback Loop

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Prices Usage User Interface Price Calculation Network Measurement User Behavior Estimation

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Waiting Functions

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  • Probabilistically estimate “willingness” to wait

r1 r2 r3

= impatience

r m1wr1 +m2wr2 +m3wr3

Estimate parameters

w

discount time waited

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Minimizing Cost

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Time Traffic

Offering discounts Exceeding capacity

G1 +G2

minimize variables di

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TUBE Architecture

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Design Guidelines

  • 1. Separating functionality

 Price computation on a central server  Price display and scheduling the usage on the user devices

  • 2. Scaling up the system

 User behavior estimation algorithm requires only aggregate,

not individual usage data

 Formulate the price calculation as a convex optimization for

computation scalability for many TDP periods

  • 3. Protecting user privacy

 No Deep Packet Inspection (DPI) and no private data is exchanged.

  • 4. Empowering user control

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TUBE: TDP Architecture

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User Device

Autopilot

Youtube Flipboard Magazine Netflix Apple App Store

Usage Monitor

User GUI ISP Server Aggregate Traffic Measurement

Allow or Block

Price Information Application Traffic Secure Connection

User Behavior Estimation Price

  • ptimizer

! "#$% & ' (% ) * +, - . & / 00& 1+2% ) 34 % (&

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TUBE Implementation

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TDP Price Optimizer Pricing Plans

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Manual Autopilot Pricing Policy Container Authentication Module Delegation Mechanism

User Device Queries

REST API

User Behavior Estimation Measurement Usage Monitoring Plugins Linux Netfilter

3G Standard

RADIUS

!

Pricing Policy Enforcer Plugins Linux Traffic Control DPI TDP

3G Standard

Linux Netfilter Push Notifier

SMS

Push Message

Server Side Design

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TDP Price Optimizer Pricing Plans

!

Manual Autopilot Pricing Policy Container Authentication Module Delegation Mechanism

User Device Queries

REST API

User Behavior Estimation Measurement Usage Monitoring Plugins Linux Netfilter

3G Standard

RADIUS

!

Pricing Policy Enforcer Plugins Linux Traffic Control DPI TDP

3G Standard

Linux Netfilter Push Notifier

SMS

Push Message

Server Side Design

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Number of Periods 12 24 48 96 144 Behavior Estimation (sec) 12.76 200.0 959.6 1967 15040 Price Calculation (sec) 1.67 1.69 1.70 1.81 1.84

Number of TDP periods

Number of Application Type Number of Periods 2 4 8 12 0.21 12.99 21.52 24 3.33 47.08 75.47 48 15.99 197.22 215.42

Number of TDP periods x Number of application types (mins)

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Client Side Design

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Manual Autopilot Communication Module Graphical User Interface

Budget

Price Dispatcher Session Recorder Usage Tracker Price Display Usage Display Settings Display Top 5 Apps Display Current Bill Display Popup Display Price Status bar Display Price DB Daemon Usage Collector Usage DB Budget Helper

App Scheduler

Budget Manager Delegation Pulled Local Autopilot Algorithm

App PPI Scheduler

Enforcer Allow/Block Notifier Task Manager

Type Status bar App usage Daemon Support LOC iPhone No No Partial 25K Android Yes Yes Yes 5.4K Windows Yes Yes Yes 5.3K

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TUBE Princeton Trial

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Princeton Trial: Money Flow

  • 50 AT&T participants: 27 iPhones, 23 iPads
  • Faculty, staff, and students
  • 14 Academic Departments & Divisions

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Participants

$$ $$

TUBE Project

$$

TDP based payments Current pricing scheme

Wireless Provider

AT&T

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Princeton Trial: Data Flow

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User's iPhone, iPad

AT&T's mobile network DNS NAT Gateway AT&T Firewall TUBE Servers

VLR MCS SGSN AuC GGSN HLR

3G Core Network

GMSC

PSTN Data Flow

BSS

Data Flow VPN

BSC

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TUBE App: Information Screens

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4 % 4 % 4 %

Price indicator

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TUBE App: Scheduling Screens

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Princeton Trial Results

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Two main goals of the trial

  • 1. How do people respond to pricing changes and

GUI design?

  • 1. Can the end to end TDP system work in the

real world and can our architecture scale up?

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Usage Statistics

  • How much bandwidth participants use? – „Heavy tailed‟
  • Which applications use the most bandwidth – Streaming and

surfing

42 0.1 0.2 0.3 0.4 0.5 Movie Web Downloads Music News/Mags. Other

Usage Volume (GB) Applica on Type

Non-Jailbroken iPads Jailbroken iPads iPhones

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UI Effectiveness

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Do users respond more to the numerical values of TDP prices

  • r to the color of the price indicator bar on the home screen?

 Users paid more attention to indicator color than the numerical discount values

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UI Effectiveness

Period types 1 and 3

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 Users paid more attention to indicator color than the numerical discount values

Period types 2 and 1

Type Periods First Stage Color Discount Second Stage Color Discount

1 2, 8, 14, 20 Orange 10% Orange 28% 2 3, 6, …, 24 Orange 10% Green 30% 3 5, 11, 17, 23 Orange 10% Orange 9%

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Optimized TDP Impact

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Does the peak usage decrease with time-dependent pricing? And does this decrease come at the expense of an overall decrease in usage?

» Optimized TDP reduces the peak-to-average ratio » Overall usage significantly increases with TDP

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Optimized TDP Impact

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Does the peak usage decrease with time-dependent pricing? And does this decrease come at the expense of an overall decrease in usage?

» Optimized TDP reduces the peak-to-average ratio » Overall usage significantly increases with TDP

PAR reduces by 30% Overall usage increases by 130%

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Trial Limitations and Extensions

Limitations:

  • 1. Single bottleneck
  • 2. Mobility
  • 3. Control group
  • 4. Time granularity

Extensions:

  • 1. Location/congestion dependent pricing
  • 2. Commercial operator trials

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Summary

  • 1. A fully functional system for offering TDP for

mobile data

  • 2. People are sensitive to time-dependent

prices and indeed shift their Internet usage to off-peak periods

  • 3. The pilot trial motivates future study on TDP

for different markets and demographics

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Thank you!

sangtaeh@princeton.edu

 DataMi: http://www.datami.com  DataWiz: http://www.datawizapp.com  SDP Forum: http://scenic.princeton.edu/SDP2012

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BE TU

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Backup Slides

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TDP Performance

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Price Sensitivity

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Do users wait to use mobile data in return for a monetary discount?

» Average usage decrease in high-price periods relative to the changes in low-price periods

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Notification Effectiveness

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Do notifications impact usage?

» 80-90% of users decrease or did not increase their usage after the 1st notification » For all subsequent notifications, about 60-80% of the active users decrease their usage, while the others remained price-insensitivity

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Impact on Ecosystem

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Does the application usage distribution change due to TDP?

» People are motivated to use more bandwidth during low-price periods, “valley filling”.

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Movies Web Downloads Music News/ Mags. Other

Usage (%

  • f

Total) Applica on Type

Before TDP With TDP