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Mobile Information Systems
Volume 2015, Article ID 892705, 10 pages
http://dx.doi.org/10.1155/2015/892705
Research Article

Optimizing MPBSM Resource Allocation Based on Revenue Management: A China Mobile Sichuan Case

School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China

Received 13 January 2015; Accepted 9 April 2015

Academic Editor: Peter Jung

Copyright © 2015 Xu Chen. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The key to determining the network service level of telecom operators is resource allocation for mobile phone base station maintenance (MPBSM). Given intense market competition and higher consumer requirements for network service levels, an increasing proportion of resources have been allocated to MPBSM. Maintenance costs account for the rising fraction of direct costs, and the management of MPBSM resource allocation presents special challenges to telecom operators. China Mobile is the largest telecom operator in the world. Its subsidiary, China Mobile Sichuan, is the first in China to use revenue management in improving MPBSM resource allocation. On the basis of comprehensive revenue (including both economic revenue and social revenue), the subsidiary established a classification model of its base stations. The model scientifically classifies more than 25,000 base stations according to comprehensive revenue. China Mobile Sichuan also conducted differentiation allocation of MPBSM resources on the basis of the classification results. Furthermore, it optimized the assessment system of the telecom base stations to establish an assurance system for the use of MPBSM resources. After half-year implementation, the cell availability of both VIP base stations and total base stations significantly improved. The optimization also reduced economic losses to RMB 10.134 million, and enhanced customer satisfaction with network service by 3.2%.