Resource-Based Billing for M2M Network Cost Coverage
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Solution Overview
Problem
Current billing methods for network service providers do not adequately account for the cost of network resources utilized by Machine-to-Machine (M2M) devices, leading to inefficient resource usage and revenue discrepancies.
Innovation Solution
Implementing a resource utilization-based billing system that tracks and charges M2M devices based on both the amount of data transmitted and the network resources used, encouraging more efficient data transmission practices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If billing is based only on amount of data transmitted, then billing simplicity is maintained, but network resource utilization costs are not covered
Solution Approach 1:
The billing system segments the total cost into two distinct components: data transmission cost (based on amount of data) and network resource utilization cost (based on connection time and resource usage). This segmentation allows each component to be calculated and billed separately, ensuring comprehensive cost recovery while maintaining clear billing structure.
Solution Approach 2:
The billing model transitions from a single parameter (data amount) to multiple parameters (data amount, connection time, network resource usage). This parameter change enables the system to account for both transmission costs and resource utilization costs, resolving the contradiction between billing simplicity and comprehensive cost coverage.
2Reliability
If M2M devices maintain constant connections, then data transmission reliability is improved, but network resource consumption increases
Solution Approach 1:
The resource utilization-based billing system provides feedback to M2M device operators about their network resource consumption patterns. This feedback mechanism incentivizes optimization of connection management, allowing devices to maintain necessary connections for reliability while encouraging more efficient resource usage through cost awareness.
Solution Approach 2:
The billing system introduces dynamic pricing that reflects real-time network resource conditions. Connection costs vary based on utilization levels, creating economic incentives that dynamically balance reliability needs against resource consumption, allowing constant connections when necessary but encouraging efficiency.
3Loss of energy
If resource utilization-based billing is implemented, then cost coverage is improved, but billing system complexity increases
Solution Approach 1:
The resource utilization-based billing system is designed to work across multiple network types and M2M device configurations through a universal framework. The core billing logic remains consistent while adapting to different resource types and usage patterns, managing complexity through standardized multi-functional design.
Solution Approach 2:
The patent introduces intermediary components that bridge the complex resource tracking functions and the simplified billing output. These intermediaries handle the complexity of resource measurement, aggregation, and calculation internally, presenting a streamlined billing interface to users while comprehensively tracking resources behind the scenes.
Data Source
AI summary
A device may obtain resource utilization data associated with a machine-to-machine device. The resource utilization data may include information identifying a quantity of data transmitted by the machine-to-machine device during a particular period of time, and an amount of network resources utilized by the machine-to-machine device during the particular period of time. The device may determine a billing metric based on the quantity of data and the amount of network resources utilized by the machine-to-machine device. The device may determine, based on the billing metric, a cost associated with the amount of network resources utilized by the machine-to-machine device. The device may charge the fee associated with the utilization of the network resources by the machine-to-machine device to an account of a subscriber associated with the machine-to-machine device.