Smart Data Pricing (SDP) Innovating Data Plans Soumya Sen Joint Work with: Sangtae Ha, Carlee Joe-Wong, Mung Chiang Soumya Sen, WITE 2012

Challenges to the Internet Is it 1 year feasible ? to keep the Internet economically viable 10 $ /GB ? & technologically sustainable 100 % ? Soumya Sen, WITE 2012

Challenges to the Internet Is it Technological factors 1 10 100 year /GB $ % feasible to keep the Internet Human factors economically viable & Economic factors technologically sustainable ? Soumya Sen, WITE 2012

Challenges to the Internet NetEcon as a Solution feasible economically viable Is it technologically sustainable to keep the Internet & ? HCI, Engineering Systems Technological factors Consumer Behavior User Trials Network Economics Human factors Economics Theory Tools Methods Economic factors Soumya Sen, WITE 2012

NetEcon: A Holistic Agenda Technology Network Economics HCI & Analytics Soumya Sen, WITE 2012

What is Smart Data Pricing (SDP)? A. Usage pricing/metering/throttling/capping B. Time/location/congestion-dependent pricing C. App based pricing D. Smart Markets, Sponsored content E. Paris metro pricing F. Quota-aware content distribution G. All of the above… Time-Dependent Pricing Soumya Sen, WITE 2012

NetEcon as a Solution The Driving Forces Soumya Sen, WITE 2012

Evolution of Access Pricing The Driving Forces Soumya Sen, WITE 2012

Time Elasticity Large Peak-Valley Differential Opportunities for Streaming videos, Gaming Texting, Weather, Finance Email, Social Network updates Cloud Software Downloads Movies & Multimedia downloads, P2P Opportunities Opportunities for Exploiting time-elasticity of demand Soumya Sen, WITE 2012

Stakeholder Perspectives Consumers Policy feasibility Industry moves: US, Europe, India, Africa Soumya Sen, WITE 2012

Time Dependent Pricing (TDP) ISP cost optimization, taking user reaction into account Soumya Sen, WITE 2012

ISP’s Optimization Problem Cost of overshooting capacity Cost of rewards Soumya Sen, WITE 2012

Estimating Waiting Function Economic modeling reward waiting function delay patience index Soumya Sen, WITE 2012

TDP Architecture Soumya Sen, WITE 2012

Princeton Trial TDP for 3G data Prototype development Trial Money Flow TDP for 3G data Feasibility study Prototype development Trial 50 volunteers Data Flow Soumya Sen, WITE 2012

Graphical User Interfaces (GUIs) Price display Day-ahead Color coded: red (<10%), orange (10 ~19%), yellow (20 ~ 29%) and green (>= 30%) Self-education Top 5 Apps User control Autopilot mode Soumya Sen, WITE 2012

Price Sensitivity Do users wait to use mobile data in return for a monetary discount? Average usage decrease in high-price periods relative to the changes in low-price periods Usages changed by -10.1% in high-price and 15.7% in low-price periods Soumya Sen, WITE 2012

Notification Effectiveness Do notifications impact usage? About 60-80% of the active users decrease their usage in response to price notification pop-ups Soumya Sen, WITE 2012

UI Effectiveness Do users respond more to the numerical values of TDP prices or to the color of the price indicator bar on the home screen? Soumya Sen, WITE 2012

Optimized TDP Impact Does the peak usage decrease with time-dependent pricing? And does this decrease come at the expense of an overall decrease in usage? Optimized TDP reduce the peak-to-average ratio Overall usage significantly increase with TDP 30% PAR reduction Soumya Sen, WITE 2012

Impact on Ecosystem Does the application usage distribution change due to TDP? People are motivated to use more bandwidth during low-price periods, “valley filling”. Soumya Sen, WITE 2012

Viability Will you be able to decide on “when” to use? “I think it's a great idea, ..the iPads would say, 'If you wait a half an hour, you can have...' I thought that was incredibly useful. And I would be able to make that decision.” Are there apps for which you usually wait? “[I]f I'm out in my car and I needed it for GPS, I wouldn't care how much money I'm spending… if I just wanted to be on a social network or check my email, I would certainly wait.” Soumya Sen, WITE 2012

Usefulness What are your main concerns with TDP? “If it's predictable, yes, I think so, because let's say I know that definitely everyday from 9 to 10 it's less, then I can plan a little bit.” Was the color-coded notification bar useful to you? “I group the colors I would see if it's a good color for me... because I couldn't always figure out what it meant in terms of the dollar amount and translate that into how much I was using” Soumya Sen, WITE 2012

Opinions Were you tempted to use more data when the discounts were higher? “[laughs] Kind of! But that also goes toward my personality of if it's on sale I must buy it!” Will TDP adversely affect high-bandwidth app developers? “I don't think this will result in those kinds of applications being developed less, and I think that's because you're giving users the option” Soumya Sen, WITE 2012

Prototypes and Trials Soumya Sen, WITE 2012

Soumya Sen, WITE 2012

From $10/GB To SDP Real progress feasible Collaboration will help http://www.datami.com Collaboration will help http://scenic.princeton.edu/SDP2012/ Get to win-win for all References: S. Sen, C. Joe-Wong, S. Ha, M.Chiang, “Incentivizing Time-Shifting of Data: A Survey of Time-Dependent Pricing for Internet Access”, IEEE Communications Magazine, Nov. 2012. S. Ha, S. Sen, C. Joe-Wong, Y. Im, M. Chiang, “TUBE: Time Dependent Pricing for Mobile Data”, ACM SIGCOMM 2012. S. Sen, C. Joe-Wong, S. Ha, J. Bawa, “When the Price is Right: Enabling Time-Dependent Pricing of Broadband Data,” ACM SIGCHI 2013. Soumya Sen, WITE 2012