Second ISCA/DEGA Tutorial and Research Workshop on Perceptual Quality of Systems

Berlin, Germany
September 4-6, 2006

Charging for Quality-of-Experience: A New Paradigm for Pricing IP-based Service

Peter Reichl, Florian Hammer

Telecommunications Research Center Vienna (ftw.), Austria

Over the last couple of years, the interdisciplinary research area of "Internet Economics" has received rapidly increasing attention, especially regarding various proposals for Qualityof- Service (QoS) aware charging of IP services. However, the continuously strong trend towards flat-rate pricing in todayís fixed and mobile networks indicates that QoS differentiation does not provide a suitable economic framework for the tradeoff between quality delivered by the provider and willingnessto- pay from the customerís side. Therefore, in this paper we argue for a paradigm shift towards Quality-of-Experience (QoE) as an alternative framework for pricing service quality according to the user perception. To this end, we provide a comprehensive survey about various charging schemes for Internet services, discuss the evolution from QoS to QoE and finally describe in detail two different proposals for QoEaware Internet charging, i.e. (1) an instrumental approach complementing standard charging architectures with an additional module for translating network QoS into perceptual QoS, and (2) a novel mechanism called "Reactive Charging" which is based on direct user feedback for both perceived quality and willingness-to-pay.

Full Paper

Bibliographic reference.  Reichl, Peter / Hammer, Florian (2006): "Charging for quality-of-experience: a new paradigm for pricing IP-based service", In PQS-2006, 171-177.