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Cost and demand driven pricing model for internet services and application on Turkey's case

Alsan, Münir Murat
This thesis proposes a pricing model for Internet access services. Firstly, demand, pricing and costing practices in communications sector are briefly explored. Then a pricing model for the ADSL Internet access service by Türk Telekom is described. The model uses the demand and cost information of a specific service and price is assumed as the key input. The model tries to find the optimum level of prices that maximize the profits under certain constraints regarding the network and customer concerns. The model and its output are discussed in comparison with the international cases and the scope of the further study is addressed in line with the developments occurring in the broadband access market.