VoIP pricing in competitive telephony markets

Yung-Ming Li*, Shih Wen Chiu

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

As a disruptive technology, the Voice over Internet Protocol (VoIP) service has a great impact on telecommunication market. While VoIP over two end computers is free, VoIP providers generate profit from so-called phone-in and phone-out services, which allows the VoIP accessible users to contact conventional phone numbers. Compared with conventional public switched telephone network (PSTN) service, VoIP service has the advantage of a lower charge rate. However, it also incurs more quality uncertainty and security risk concerns. In this paper, utilizing game theoretic models, we analyze the market interactions of VoIP-to-PSTN service industry and prescribe the optimal pricing strategies with respect to both types of telephony services. Several perspectives have been addressed to help clarify the progress and evolution of VoIP services and intimations for both PSTN operators and VoIP service providers are also represented to develop several managerial implications.

Original languageEnglish
Title of host publicationProceedings of the 13th International Conference on Electronic Commerce, ICEC'11
DOIs
StatePublished - 1 Dec 2011
Event13th International Conference on Electronic Commerce, ICEC'11 - Liverpool, United Kingdom
Duration: 3 Aug 20115 Aug 2011

Publication series

NameACM International Conference Proceeding Series

Conference

Conference13th International Conference on Electronic Commerce, ICEC'11
CountryUnited Kingdom
CityLiverpool
Period3/08/115/08/11

Keywords

  • Competition
  • Game theoretical analysis
  • Pricing strategy
  • PSTN
  • VoIP

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  • Cite this

    Li, Y-M., & Chiu, S. W. (2011). VoIP pricing in competitive telephony markets. In Proceedings of the 13th International Conference on Electronic Commerce, ICEC'11 [2378129] (ACM International Conference Proceeding Series). https://doi.org/10.1145/2378104.2378129