Bandwidth allocation and pricing for telecommunications network

The pricing of future network services should comparable to the service quality. In this paper we present a packet scheduling scheme which ensures bandwidth as a Quality of Service (QoS) requirement and optimizes revenue of the network service provider. We derive a closed form formula for updating the adaptive weights of a packet scheduler from a revenue-based optimization problem. The weight updating procedure is fast and independent on any assumption of the connections' statistical behavior. The algorithm is simulated and compared to constant weights with and without a Call Admission Control (CAC) mechanism. Also, a mechanism for guaranteing a minimum mean bandwidth for different service classes is presented as supplement to the CAC procedure.