Designing mobile operator’s tariff package pricing scheme based on user’s internet behavior

Abstract

Given the rapid growth of the mobile internet market, high-priced telecom packages are limiting the growth of mobile internet use. Telecom operators and internet companies are working together to offer free-flow packages. This paper proposes a complete content selection and package pricing scheme (CSPPS) based on data provided by a telecom provider. This paper first conducts a feasibility analysis on the free traffic package scheme. By analyzing users’ usage detailed records (UDRs), this paper identified a model for user internet behavior. A scheme for content selection was developed based on this model. To discover users’ online timing characteristics, we developed a tensor decomposition factor model. To complete the package pricing process, a two-sided market model and SoftMax algorithm were combined. Performance evaluations were conducted using real data from China Unicom. According to our experimental results, our package selection scheme is effective for different scenarios.