Joint Deployment and Pricing of Next-Generation WiFi Networks

Konstantinos Poularakis, George Iosifidis, Leandros Tassiulas

Abstract: WiFi is increasingly used by carriers for opportunistically offloading the cellular network infrastructure or even for increasing their revenue through WiFi-only plans and WiFi on-demand passes. Despite the importance and momentum of this technology, the current deployment of WiFi access points (APs) by the carriers follows mostly a heuristic approach. In addition, the prevalent free-of-charge WiFi access policy may result in significant opportunity costs for the carriers, as this traffic could yield non-negligible revenue. In this paper, we study the problem of optimizing the deployment of WiFi APs and pricing the WiFi data usage with the goal of maximizing carrier profit. Addressing this problem is a prerequisite for the efficient integration of WiFi to next-generation carrier networks. Our framework considers various demand models that predict how traffic will change in response to alteration in price and AP locations. We present both optimal and approximate solutions and reveal how key parameters shape the carrier profit. Evaluations on a dataset of WiFi access patterns indicate that WiFi can indeed help carriers reduce their costs while charging users about 50% lower than the cellular service.