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VoIP pricing in competitive telephony markets

Published: 03 August 2011 Publication History

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.

References

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Edwards, M. 2001. IP telephony ready to explode into corporate world. (Industry Trend or Event). Communications News, 38: p. 96--97.
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Graham, T. and Ure, J. 2005. IP telephony and voice over broadband. info, 7(4): p. 8--20.
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Hallock, J. 2004. A Brief History of VoIP. Evolution.
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Hirsekorn, J. 2005. Timing is everything for VoIP success. EE Times Asia. Avaliable at {http://www.eetindia.co.in/ART_8800383347_1800006_TA_7229adb3.htm} Access in 2011/03/11.
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Cited By

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  • (2018)Pricing mechanism for interconnection between phone operators and virtual mobile VoIP operatorsTelecommunications Systems10.1007/s11235-017-0326-z67:1(133-147)Online publication date: 1-Jan-2018

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Published In

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ICEC '11: Proceedings of the 13th International Conference on Electronic Commerce
August 2011
261 pages
ISBN:9781450314282
DOI:10.1145/2378104
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 03 August 2011

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Author Tags

  1. PSTN
  2. VoIP
  3. competition
  4. game theoretical analysis
  5. pricing strategy

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  • Research-article

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ICEC '11
ICEC '11: 13th International Conference on Electronic Commerce
August 3 - 5, 2011
Liverpool, United Kingdom

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Overall Acceptance Rate 150 of 244 submissions, 61%

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Cited By

View all
  • (2018)Pricing mechanism for interconnection between phone operators and virtual mobile VoIP operatorsTelecommunications Systems10.1007/s11235-017-0326-z67:1(133-147)Online publication date: 1-Jan-2018

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