Smart Data Pricing (SDP) Soumya Sen Joint Work with: Sangtae Ha, Carlee Joe-Wong, Mung Chiang Innovating Data Plans Soumya Sen, WITE 20121

? Challenges to the Internet feasible economically viable Is it year /GB $ % technologically sustainable to keep the Internet & ? ? Soumya Sen, WITE 20122

Challenges to the Internet feasible economically viable Is it year /GB $ % technologically sustainable to keep the Internet & ? Technological factors Human factors Economic factors Soumya Sen, WITE 20123

feasible economically viable Is it technologically sustainable to keep the Internet & ? Technological factors Human factors Economic factors Network Economics NetEcon as a SolutionChallenges to the Internet HCI, Engineering Consumer Behavior Economics Systems User Trials Theory ToolsMethods Soumya Sen, WITE 20124

Network Economics NetEcon: A Holistic Agenda Technology HCI & Analytics Soumya Sen, WITE 20125

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 20126

NetEcon as a Solution The Driving Forces Soumya Sen, WITE 20127

Evolution of Access Pricing The Driving Forces Soumya Sen, WITE 20128

Time Elasticity Streaming videos, Gaming Texting, Weather, Finance , Social Network updates Cloud Software Downloads Movies & Multimedia downloads, P2P Opportunities Large Peak-Valley Differential Opportunities for Exploiting time-elasticity of demand Soumya Sen, WITE 20129

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

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

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

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

TDP Architecture Soumya Sen, WITE

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

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

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 % in high-price and 15.7% in low-price periods Soumya Sen, WITE

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

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

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

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

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 , I would certainly wait. Soumya Sen, WITE

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

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

Prototypes and Trials Soumya Sen, WITE

Soumya Sen, WITE

From $10/GB To SDP Real progress feasible – Collaboration will help – 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 S. Ha, S. Sen, C. Joe-Wong, Y. Im, M. Chiang, TUBE: Time Dependent Pricing for Mobile Data, ACM SIGCOMM S. Sen, C. Joe-Wong, S. Ha, J. Bawa, When the Price is Right: Enabling Time-Dependent Pricing of Broadband Data, ACM SIGCHI Soumya Sen, WITE