Chapter 7.3, Problem 3CQ1

Explanation of Solution

Tiered service model:

• Tiered service models allow the users to choose from a small set of tiers at gradually increasing price points to get the products best matched to their needs.
• This systems are continuously seen in the telecommunications field, exactly when it comes to wireless service, broadband internet access and digital and cable TV options.
• For example, when a wireless company charges client’s different money based on the number of text messages, voice minutes and any other features they want, the company is using the principle of tiered service.
• These charges also applicable for other services such as speed of individual’s internet connection and the total number of cable TV channels one has access to...