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Toward a Profitable ISP Business in a Competitive Environment
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Author(s): Ioanna D. Constantiou (Athens University of Economics and Business, Greece)and Jörn Altmann (University of California at Berkeley, USA)
Copyright: 2004
Pages: 19
Source title:
Social and Economic Transformation in the Digital Era
Source Author(s)/Editor(s): Georgios Doukidis (Athens University of Economics and Business, Greece), Nikolaos Mylonopoulos (Athens Laboratory of Business Administration, Greece)and Nancy Pouloudi (Athens University of Economics and Business, Greece)
DOI: 10.4018/978-1-59140-158-2.ch012
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Abstract
The market of Internet service providers (ISPs) is highly competitive. Although many different pricing schemes could be deployed in this market, two types are mainly offered: flat rate pricing and per-minute pricing. These pricing schemes are criticised for limiting ISPs’ revenues and for not addressing customer’s requirements on service quality. We focus on the ISPs’ business relationships and on their pricing strategies in order to analyse revenue sharing mechanisms. We argue that the introduction of incentive pricing schemes, such as dynamic pricing, may enable provision of service quality by improving revenue sharing among ISPs.
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