Telecommunication market model and optimal pricing scheme of 5G services

Telecommunication and IT companies are looking forward to the implementation of 5G technology. The driving factors of this technology is aggregation of computing and networking resources. The 5G services will be more complicated than usual online services not only in technological methods, but also from an economic problems: fast service development, productive utilization of networks resources, dynamic adjustment to real market demand are all direct benefits of the integration 5G infrastructure. In this paper we study the economic mutual influence between 5G resource providers and customers. In this work we study telecommunication market and build services pricing scheme for the welfare maximization and for the companies profit maximization. We find the conditions under which investments in new technologies of 5G, Internet of Things (IoT) and big data increase welfare. We also study the effects of investments in new technologies on the optimal service price, the network capacity, the company net revenue and profit under conditions of monopoly and duopoly on the telecommunication market. © 2018 IEEE.