Selective broadcasting of charge rates

• US 5,974,308 A
• Filed: 11/13/1996
• Issued: 10/26/1999
• Est. Priority Date: 11/13/1996
• Status: Expired due to Term

• Current Assignee: Telefonaktiebolaget LM Ericsson
• Original Assignee: Telefonaktiebolaget LM Ericsson
• Inventors: Vedel, Andreas Peter Braem
• Primary Examiner(s): WOLFE JR, WILLIS RAY
• Application Number:
  US08/747,838
• Time in Patent Office: 1,077 Days
• Field of Search: 455/406, 455/407, 455/453, 379/112, 379/114, 379/130, 379/132
• US Class Current: 455/407
• CPC Class Codes: H04M 15/00 Arrangements for metering, time-control or time indication ; Metering, charging or billing arrangements for voice wireline or wireless communications, e.g. VoIP
• CPC Class Codes: H04M 15/28 with meter at substation or with calculation of charges at terminal
• CPC Class Codes: H04M 15/8083 involving reduced rates or discounts, e.g. time-of-day reductions or volume discounts
• CPC Class Codes: H04M 15/81 Dynamic pricing, e.g. change of tariff during call
• CPC Class Codes: H04M 2215/0112 Dynamic pricing, e.g. change of tariff during call
• CPC Class Codes: H04M 2215/0184 involving reduced rates or discounts, e.g. time-of-day reductions, volume discounts, cell discounts, group billing, frequent calling destination(s) or user history list
• CPC Class Codes: H04M 2215/22 Bandwidth or usage-sensitve billing
• CPC Class Codes: H04M 2215/32 Involving wireless systems

Abstract

A cellular phone system, optimizing user demand by charging system subscribers according to a Variable Charge Rate (VCR) that is based on the price elasticity of the subscribers. According to the present invention, the service provider monitors the load in each cell and, for each cell, the service provider continuously determines a charge rate that can be tailored to specific subscriber category according to a number of variables, offering subscribers a VCR that is optimized for the individual cell'"'"'s capacity and overall system capacity. According to an exemplary embodiment, subscribers may use mobile stations supporting the Short Message Service (SMS) to provide the subscribers with the broadcast VCR. The system can determine, in real time, optimal VCRs for individual cells to maximize revenue generated by the cell for any time of day. The VCRs may be selectively broadcast to the VCR-mobile station to inform subscribers of the current rate of charge for calls. VCRs may be tailored to specific categories of subscribers to provide better price differentiation between subscribers based on price elasticity of the subscribers categories.

Claims

1. A communications system servicing a plurality of subscribers comprising:

at least one base station in a cell for communicating with a plurality of mobile stations;

a mobile station capable of communicating to and receiving calls from the at least one base station, including a display for displaying a current charge rate received from the at least one base station, wherein the current charge rate is based on subscriber price elasticity, wherein said subscriber price elasticity is based on at least subscriber demand curves, said subscriber demand curves being based on at least categories of subscribers.

2. The system of claim 1 wherein the current charge rate is determined based upon a request received from the mobile station and then the current charge rate is transmitted to the mobile station.

3. The system of claim 1 wherein the current charge rate is transmitted to the mobile station from the base station.

4. The system of claim 1 wherein the subscribers are divided into subscribers categories based on price elasticity.

5. The system according to claim 1 wherein the current charge rate is additionally based on a call load within the system.

6. The system according to claim 5 further comprising:

a processor for determining the current charge rate.

7. The system of claim 1 wherein the current charge rate is based on a current call load within a cell where the mobile station is located.

8. The system of claim 7 wherein the processor determines the current charge rate based on at least one of the factors of:

the number of calls in a cell charged at a variable charge rate, the number of calls in a cell charged at a fixed charge rate, and the total number of calls handled by the system.

9. The system of claim 8 wherein the current charge rate includes a safety margin of how close to congestion the current call load may be.

10. The system of claim 1 wherein the subscriber price elasticity is determined from demand curves.

11. The system of claim 10 wherein the demand curves are communication demand curves.

12. The system of claim 10 wherein the demand curve is determined based on at least one of the factors of time of day, day of week, time of year, type of district, and category of subscribers.

13. The system of claim 10 wherein the demand curve is determined based on the factors of time of day, day of week, time of year, type of district, and category of subscribers.

14. A method for optimizing use of the capacity of a radio communications system including a plurality of cells and servicing a plurality of subscribers, each cell including at least one base station capable of communicating with a plurality of mobile stations, and means for continuously monitoring the call load of each cell, the method comprising the steps of:

monitoring the current call load of each cell;

determining a plurality of charge rates based on price elasticities of the subscribers, wherein said subscriber price elasticities are based on at least subscriber demand curves, said subscriber demand curves being based on at least categories of subscribers.

15. The method of claim 14, wherein the current charge rate is based on the current call load within a cell where the mobile station is located.

16. A method according to claim 14 wherein the current charge rate is additionally based on the current call load in a system.

17. The method of claim 15 further comprising the step of broadcasting the plurality of charge rates to a plurality of mobile stations in a cell, wherein each charge rate is broadcast to a subset of the plurality of subscribers wherein the subset is based on a subscriber category.

18. The method of claim 14 wherein price elasticity is determined from subscriber demand curves.

19. The method of claim 18 wherein the demand curves are based on a history of charge rates in every cell, a history of the number of mobiles registered in every cell, and a history based on categories of subscribers using the system.

20. A method according to claim 14 wherein the current charge rate is additionally based on a current call load within a cell.

21. The method of claim 16 further comprising the step of broadcasting the plurality of charge rates to a plurality of mobile stations in a cell, wherein each charge rate is broadcast to a subset of the plurality of subscribers wherein the subset is based on a subscriber category.

22. A system for optimizing use of the capacity of a radio communications system having a plurality of cells serving a plurality of subscribers, the system comprising:

means for determining a charge rate based on a price elasticity of subscribers, wherein said subscriber price elasticity is based on at least subscriber demand curves, said subscriber demand curves being based on at least categories of subscribers; and

means for transmitting the charge rate to the plurality of subscribers.

23. The system of claim 22 wherein the charge rate determining means additionally determines the charge rate based on a current call load in the system.

24. The system according to claim 22 wherein the charge rate determining means additionally determines the charge rate based on a current call load in a cell.

25. The system of claim 22, further comprising:

a mobile station including means for communicating to a user a current charge rate received from the transmitting means.

26. The system of claim 22 wherein the current charge rate is based on the current call load within a cell where the mobile station is located.

27. The system according to claim 22 wherein price elasticity is determined from demand curves.

28. The system of claim 24 wherein the demand curves are based on at least one of the factors of time of day, day of week, time of year, type of district, and category of subscriber.

29. The system of claim 28, wherein the demand curves may be split based on one of said factors if the demand curves differ significantly.

30. The system of claim 28, wherein the charge rate is determined for a category corresponding to a subset of the plurality of subscribers and only transmitted to the subset of subscribers.