We study the pricing of point-to-point capacities corresponding to
different quality of service (QoS) classes in a simple
telecommunications network and under an efficient network routing. The network uncertainties come from point-to-point demand processes that are driven by Brownian motions. Our model gives an analytical QoS pricing
formula in terms of perfect quality prices and the parameters of the point-to-point demand processes. In the absence of perfect quality prices, a utility based pricing approach is used. The model is illustrated with a numerical example and the QoS-price curve is found to
be S-shaped.
