Pricing for Congestion in Telephone Networks: A Numerical Example

Abstract

This chapter focuses on the pricing for congestion in telephone networks. A network can be schematically represented as a set of exchanges, whose function is to connect a calling subscriber to the wanted number, and of junctions connecting exchanges and conveying the information. A computational model was presented for the computation of optimal rates. Few exchanges will be major ones, others will be serving only a local area. There exist different types of transmitting facilities (junctions) adapted to different distances and volumes of traffic. A junction can be treated as a set of circuits, each one of which can handle a single call at a time. The chapter presents a model that aims only at presenting much idealized description of a modern telephone system. The model was built mainly for illustrative purposes and is suitable for networks without alternate routes with full access and progressive control.