Information system of support of economic decisions on the development of the Internet provider network

Abstract

The paper suggests and confirms the hypothesis about the dependence of the price of internet service provider tariffs on the main economic and demographic determinants, and also defines the list of these determinants. An economic-mathematical model for optimizing the distribution of the budget for the expansion of the Internet provider's network between the execution of connection requests for separate service lines and tariffs has been developed. One of the key elements of the activity of Internet providers is the solution of the "last mile" problem, which consists in providing a communication service between the end user and the provider's Internet access node. Taking into account the orientation of such enterprises to the maximization of their own profit, this problem should be considered in the technical and economic dimension. Solving this problem requires a multidimensional approach that takes into account technology, economics and geography, as well as the significant investment required to expand network coverage and meet the demands of a distributed customer base. Internet providers should take into account the negative impact of possible network congestion, non-linear pricing, as well as consumer demand when optimizing pricing strategies and network development strategies. The developed model was applied to historical data on the activity of the Internet provider. The proposed approaches are combined into a single information system to support economic decision-making for the development of network of Internet providers, which contributes to the implementation of the developed model in practice and allows to increase the efficiency of the production activities of such enterprises. The paper put forward and confirmed the hypothesis about the dependence of prices for fixed Internet connection services on the dollar exchange rate, the cost of connecting to the trunk node, and the population. Approaches to economic decision-making in the management of the Internet provider's activities were further developed, namely, an economic-mathematical model was developed and tested to optimize the allocation of the budget for the expansion of the Internet provider's network between the satisfaction of applications of potential subscribers for connection in the section of individual tariffs of the provider's current tariff grid. As a result of the test of the developed economic-mathematical optimization model on the historical data of the enterprise, the possibility of improving the expected profit relative to the basic plan by 18% was established.