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IAENG Transactions on Engineering Technologies pp 121–135Cite as

Subsidy, Revenue and Tragedies in Heterogeneous Communities

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Part of the book series: Lecture Notes in Electrical Engineering ((LNEE,volume 186))

Abstract

Developing countries have embarked on the promotion of “ICT access for all” through subsidized Information and Communication Technologies (ICTs), especially in underserviced areas of such countries. The main aim of the “ICT access for all” is to extend the communication services to the large areas of underserviced regions through subsidized communication services. In some instances, subsidies may lead to high ICT penetration and high resource utilization while in some instances unsubsidized services may lead to low utilization of resources and low ICT penetration, which may eventually lead to market failure and destroy market efficiency. With explicitly defined objectives, regarding subsidy policy, however, developing countries always fall short on the implementation of such subsidy policy due to economic reasons and unrealistic subsidy driven pricing models. In this paper we investigate the impact of subsidy driven pricing model on resource utilization and revenue maximization in a developing country. We try to find a middle ground between promoting “ICT access for all” (given a subsidy and diverse income variations between the groups) and resource utilization in a network.

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References

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Acknowledgments

This work was partially supported by the University of Johannesburg commonwealth bursary fund.

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Authors and Affiliations

  1. Department of Mechanical Engineering Science, University of Johannesburg, Auckland Park, P.O. Box 524, Johannesburg, 2006, South Africa

    Mbuyu Sumbwanyambe & Andre L. Nel

Authors
  1. Mbuyu Sumbwanyambe
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  2. Andre L. Nel
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Corresponding author

Correspondence to Mbuyu Sumbwanyambe .

Editor information

Editors and Affiliations

  1. , Department of Multimedia Engineering, Mokpo National University, Dorim-ri, MuanGun 61, Chonnam, 534-729, Korea, Republic of (South Korea)

    Gi-Chul Yang

  2. , Unit 1, 1/F, International Association of Engineers, Hung To Road, Hong Kong, 37-39, Hong Kong SAR

    Sio-Iong Ao

  3. , Faculty of Information Sciences and Engi, University of Canberra, Building 11, Room A17, Bruce ACT, 2601, Australia

    Xu Huang

  4. , Calzada Tecnologico s/n, Tijuana Institute of Technology, Fracc. Tomas Aquino CP, Tijuana, 22379, Mexico

    Oscar Castillo

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Sumbwanyambe, M., Nel, A.L. (2013). Subsidy, Revenue and Tragedies in Heterogeneous Communities. In: Yang, GC., Ao, SI., Huang, X., Castillo, O. (eds) IAENG Transactions on Engineering Technologies. Lecture Notes in Electrical Engineering, vol 186. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-5651-9_9

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  • DOI: https://doi.org/10.1007/978-94-007-5651-9_9

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  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-007-5623-6

  • Online ISBN: 978-94-007-5651-9

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