With tremendous growth in the wireless industry and due to scarcity of spectrum, the future cellular network will be limited by the number of channels available in each cell. The solutions like sectoring, cell splitting cannot cope up with the ever increasing demand of the subscribers. One of the other options to control the demand is through the economical means. Cellular users are sensitive to price and it can act as a tool to determine number of incoming calls and control the duration of such calls. In this paper we have studied and analyzed theimpact of dynamic pricing on traffic and congestion in cellular networks. The simulations are carried out using fixed, linear and nonlinear pricing for the incoming calls. The obtained results show that using dynamic pricing strategies in cellular networks reduces the congestion and blocking probability. It increases the system utilization. The results also illustrates that the dynamic nonlinear pricing has better performance than that of dynamic linear pricing.

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Congestion Control Dynamic Linear Pricing Dynamic Nonlinear Pricing