New game theory model lets operators and service providers co-invest in MEC
Network operators can finally profit from MEC without bearing all the costs alone.
Mobile Edge Computing (MEC) demands heavy upfront infrastructure investment from Network Operators (NOs), yet most revenue flows to Service Providers (SPs) delivering apps to end users. This imbalance discourages NOs from deploying MEC, even as demand for low-latency services surges. A new paper from Sakr et al. (accepted at IFIP Networking 2026) tackles this with a formal coalitional game model where one NO and multiple SPs co-invest, share costs, and split revenues over multiple decision epochs. The model goes beyond static agreements by allowing players to dynamically enter or exit the coalition as user demand and incentives change.
To sustain cooperation, the authors design a compensation scheme that redistributes payoffs fairly, plus a periodic resource update mechanism that adjusts infrastructure capacity based on current demand. Numerical experiments demonstrate that combining resource updates with dynamic participation significantly increases total coalition payoff and gives the NO a stronger incentive to invest—closing the cost-revenue gap that currently stalls MEC rollouts. The work provides a practical framework for operators and service providers to jointly fund edge infrastructure without locking into rigid long-term contracts.
- Proposes a coalitional game where one NO and multiple SPs jointly deploy and maintain MEC infrastructure.
- Allows dynamic entrance and exit of players over multiple decision epochs to adapt to changing demand.
- Compensation scheme and periodic resource updates boost total payoff and strengthen NO investment incentive.
Why It Matters
Aligns incentives between operators and service providers, potentially accelerating real-world MEC deployment and enabling faster low-latency services.