Economic Alternatives for the Provision of URLLC and eMBB Services Over a 5G Network

Abstract

AbstractThis research work analyzes economic alternatives for the provision of ultra-reliable low latency communication (URLLC) and enhanced mobile broadband (eMBB) services by mobile network operators over the same fifth-generation (5G) network. Two business models are proposed to provide the two services to end users. Concretely, a monopoly is a single operator who offers both services, and a duopoly is two different operators that share network resources and offer one service each. In addition, two types of network scenarios for resource sharing are studied. Specifically, a shared network (SN) is a type of network scenario allowing resources to be shared between the two services without priority. A differentiated network (DN) is a type of network scenario that allows resources to be shared between the two services with a priority to URLLC service using network slicing (NS). Regarding the economic aspects, the incentive is modeled through the user’s utility and the operator’s benefit. At the same time, game theory is used to model the strategic interaction between users and operators, and queuing theory is used to model the interaction between the two services. We conclude that the monopoly social welfare (SW) is closer to the SW of the social optimum than the duopoly SW. In addition, the DN scenario to offer the services through NS is more suitable than the SN scenario since the point of view of service prices, user utilities, and operator benefit.