Travel with Your Mobile Data Plan: A Location-Flexible Data Service

Mobile Network Operators (MNOs) provide wireless data services based on a tariff data plan with a month data cap. Traditionally, the data cap is only valid for domestic data consumption and users have to pay extra roaming fees for overseas data consumption. A recent location-flexible service allows the user to access the domestic data cap in overseas locations (by configuring location-flexibility with a daily fee). This paper studies the economic effect of the location-flexibility on the overseas market. The overseas market comprises users who travel overseas within the month, thus is monthly variant. Each user decides his joint flexibility configuration and data consumption (J-FCDC) every day. The user's J-FCDC problem is an on-line payoff maximization. We analyze its off-line problem (which is NP-hard) and design an on-line strategy with provable performance. Moreover, we propose a pricing policy for the location-flexible service without relying on the market statistic information. We find that the location-flexibility induces users to consume more data in low-valuation days, and the MNO benefits from stimulating users' data consumption through an appropriate pricing. Numerical results based on empirical data show that the location-flexibility improves the MNO's revenue by 18% and the users' payoffs by 12% on average.