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Next-Generation Strategic Business Model for the U.S. Internet Service Providers: Rate-Based Internet Subscription

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  • Charles C. Willow

    (Monmouth University, USA)

Abstract

The (information digital) network bandwidth and its usage through Internet subscription, by far, is perhaps the only uni-modal commodity provided to today’s consumers at a flat rate. Regardless of his/her actual bandwidth usage, a consumer is charged a uniform subscription fee by the Internet Service Providers (ISP). Meanwhile, the ISPs have a considerable stake in the overall infrastructure which supports the local perimeters of the Internet. This article presents a rigorous statistical analysis with the objective of determining the optimal billing or pricing policy for the ISPs of the U.S. on the basis of the proposed ‘variable subscription-rate’ business model. Two leading global consumer profiles were selected for data comparison on a cardinal scale; NYC, NY, U.S.A. and Seoul, South Korea.

Suggested Citation

  • Charles C. Willow, 2009. "Next-Generation Strategic Business Model for the U.S. Internet Service Providers: Rate-Based Internet Subscription," International Journal of Interdisciplinary Telecommunications and Networking (IJITN), IGI Global, vol. 1(3), pages 31-41, July.
    • Handle: RePEc:igg:jitn00:v:1:y:2009:i:3:p:31-41
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