Pricing and Bandwidth Optimization in Heterogeneous Wireless Networks

We consider a large wireless network with both heterogenous transmitters and receivers. The transmitters consist of large (macro) cells which have large transmission power and small (femto) cells with much smaller transmission power. The receivers consists of highly mobile users, which are better served by macrocells and fixed users, which can be served by either macrocells or femtocells. We study the optimization of a service provider's revenue in this heterogeneous wireless network, where the provider sets prices for fixed and mobile services as well as allocates bandwidth to macrocells and femtocells. We also study social welfare maximization and compare the resulting bandwidth allocation and prices with revenue maximization.