Decisions on charging for GPRS by packet or simply a flat monthly fee are contentious but need to be made. Charging different packets at different rates can make things complicated for the user, whilst flat rates favor heavy users more than occasional ones.
We believe that the optimal GPRS pricing model will be based on two variables- time and packet. Network operators should levy a nominal per packet charge during peak times plus a flat rate, no per packet charge during non peak times. Time and packet related charging will encourage applications such as remote monitoring, meter reading and chat to use GPRS overnight when spare network capacity is available. Simultaneously, a nominal per packet charge during the day will help to allocate scarce radio resources and charge radio heavy applications such as file and image transfer more than applications with lower data intensity. It has the advantage that it will automatically adjust customer charging according to their application usage.
As such the optimal charging model could well be a flat rate charge during off-peak times along with a per packet charge during peak times.
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