# Optimal Pricing in a Rented 5G Infrastructure Scenario with Sticky Customers
## 3 The 5G Infrastructure: Network Operators, Pricing Plans, and Customer Preferences  
Our analysis of pricing strategies has been conceived in the context of 5G mobile networks, where the phenomenon of virtual operators has grown. In this section, we provide a brief description of 5G networks and the network model we employ in our study. The 5G network architecture is composed of several key components, including [34; 35]:  
* The radio access network (RAN), which is responsible for connecting devices to the 5G network and providing wireless communication;
* The core network, which provides the routing and switching functionality needed to connect devices to the internet and other networks;
* The transport network, which provides the physical infrastructure needed to connect the RAN and core network;
* The management and orchestration layer, which is responsible for configuring and controlling the network elements and services;
* The security layer, which provides end-to-end security for the network and its users. Here we consider a scenario where the infrastructure, namely the radio access portion, is owned by a single operator (which we will refer to as the owner or MNO (mobile network operator) in the following). However, that infrastructure is rented out to other operators which we will refer to as the renters or MVNOs (mobile virtual network operators) in the following. Mobile network operators own and operate mobile networks. They are responsible for building and maintaining the infrastructure required for mobile communication services, such as cell towers and base stations. They also typically own the spectrum licenses needed to provide these services. Here, we imagine a scenario where we have a single MNO. Mobile virtual network operators (MVNOs), instead, do not own their own mobile networks but instead purchase network access from MNOs and resell it to their customers. MVNOs typically focus on specific market segments or niches and may offer specialized services or pricing plans. These operators can offer a variety of pricing plans to their customers. MNOs and MVNOs typically do not differ greatly in their offer portfolio. Some possible pricing plans include:  
* Pay-as-you-go plans, which allow customers to pay for only the minutes, texts, and data that they use; this plan can be a good option for customers who do not use their phone frequently or who want to avoid the commitment of a long-term contract;
* Prepaid plans, which require customers to pay in advance for a set amount of minutes, texts, and data and to add more credit to continue using the service when they have used up their prepaid balance;
* Postpaid plans, which allow customers to use the service and pay for it at the end of the month and can be a good option for customers who use their phone frequently and want the convenience of not having to constantly add credit to their account;
* Monthly plans, which typically offer a set amount of minutes, texts, and data for a fixed monthly fee and can be a good option for customers who use their phone frequently and want a predictable monthly bill;
* Family plans, which allow multiple people on the same account to share minutes, texts, and data, and can be a good option for families or groups of friends who want to save money on their mobile service. MNOs typically charge virtual operators for the use of their network infrastructure and services in one of the following ways:  
* Wholesale rate on a per-minute, per-text, or per-data-unit basis; this rate is typically lower than the retail rate that MNOs charge their own customers;
* Flat rate for a set amount of minutes, texts, and data, which can be a good option for MVNOs that want a predictable monthly bill and want to offer fixed plans to their customers;
* Reseller agreements, where the MVNOs resell the MNOs service with a markup;* Revenue sharing agreements, where the MVNOs pay a percentage of their revenue to the MNOs in exchange for network access.