The 18th Annual IEEE International Symposium on Personal, Indoor and Mobile Radio Communications (PIMRC'07) 1-4244-1144-0/07/$25.00 ©2007 IEEE. EVALUATION OF 802.16 TARIFF PROPORTION ON SEGMENTATION SCENARIOS Muhammad Suryanegara Dhany Krishna Murti Dadang Gunawan Wireless and Signal Processing Research Group (WASP) Center for Information and Communications Engineering Research (CICER) Department of Electrical Engineering - Universitas Indonesia Kampus UI Depok 16424 Indonesia (Email: dhany@student.eng.ui.ac.id / dhanykm@yahoo.com ; msurya@ee.ui.ac.id; guna@eng.ui.ac.id) ABSTRACT The most prominent features of WiMAX (IEEE 802.16 standard) are it’s wide coverage and high speed data-rate. A segmentation for WiMAX subscribers is needed by operators in order to reach all available subscriber types (class 1=Platinum, class 2=Gold, dan class 3=Silver). A segmentation for WiMAX subscribers could also optimize the use of available bandwidth, according to the characteristics of each subscriber type. By segmenting potential customers, operators need to differentiate their tariff to reach expected profit. We evaluated tariffs composition scheme for segmented customers in metropolitan and rural area as general reference for operators. The calculations are based on model and algorithm considering WiMAX technical configurations, operator’s profit expectation, cost per users and tariff offered. The algorithm applied several models to meet possible classification and segmentation. As calculation example, we use specific parameters on typical WiMAX Business Model. I. INTRODUCTION WiMAX (8012.16) has been expected as technology platform offering B3G features. It uses Orthogonal Frequency Divison Multiplexing (OFDM) which perform efficient spectrum allocation and maximal transfer rate on optimum bandwidth [1][2][3]. One prominent feature is the coverage area that WiMAX can reach its potential subscribers. Theoritically, its typical range spans around 50 km with transfer rate up to 75 Mbps [4]. By using Adaptive Modulation scheme, the WiMAX bandwidth is flexible from 1,5 MHz to 20 MHz for facilitating multi subscribers transfer rate demands. The ability to reach larger area, has made WiMAX as primary choice in most developing countries aimed to increase ICT penetration in rural area. Yet, from the business perspective, operators questioned whether WiMAX could be afforded by all type of potential subscribers in multi coverage area (urban-suburban, and rural). The idea to classify and to segment potential subscribers could be solution when enrolling WiMAX to market. Based on WiMAX technical characteristic, operators might classifies subscribers into classes 1, 2, 3. Each class has different tariff for its different maximum reserved and sustained bandwidth. In parallel operators also might differentiate user’s segmentation based on service proportion allocations in urban and rural area. However, operators still has to reach optimum profit from each of subscriber’s class. Then, operators need to calculate tariff composition value among classes on multi segmentation model. It also benefits operators by providing proper guidance to determine the best appropriate scheme for any condition in rural and urban service area. In this paper, we evaluated tariff composition scheme based on proposed subscriber’s classifications and service segmentations. Simple algorithm is applied considering WiMAX technical configuration, operators’s profit expectation, cost per users and tariff offered. We did example calculation by using parameters on typical WiMAX Business Model [2]. It is assumed that non- blocking traffic were generated equally on each class. II. SUBSCRIBER’S SEGMENTATION A . Segmentation Service segmentation was related to potential subscriber’s characteristic on demographic areas. This paper is considering WiMAX networks in 2 (two) demographic area, that is metropolitan and rural area. The defined area are based on several parameters such as people density, cell size, and market penetration potency [2]. Since WiMAX apply Adaptive Modulation Scheme, we use 6 (six) alternatives WiMAX technical condition in 1 (one) Base Station service area. Table 1 and Table 2 show WiMAX technical configurations for Metropolitan and Rural area. B. Classification Tariff offered by operators is dependent to class of users. We classifies potential subscribers into 3 (three) classes based on common definition, namely: Platinum, Gold, and Silver class. Platinum class will have higher tariff than Gold and Silver in sequence [5]. Operator may manage tariff scheme based on technical benefit offered by WiMAX, and treatment shall depends on operators business strategy. We proposed 3 (three) models of service segmentation (P, G, S model) as a function of 3 (three) classes (X=platinum, Y=gold, Z=silver). WiMAX operators may