Market and Sharing Alternatives for the Provision of Massive Machine-Type and Ultra-Reliable Low-Latency Communications Services over a 5G Network

The objective of this paper is to analyze economic alternatives for the provision of ultra-reliable low-latency communication (URLLC) and massive machine-type communication (mMTC) services over a fifth-generation (5G) network. Two business models, a monopoly and a duopoly, are studied and two 5G network scenarios are analyzed: a 5G network where the network resources are shared between the two services without service priority, and a 5G network with network slicing that allows for URLLC traffic to have a higher priority. Microeconomics is used to model the behavior of users and operators, and game theory is used to model the strategic interaction between users and operators. The results show that a monopoly over a 5G network with network slicing is the most efficient way to provide both URLLC and mMTC services.