Abstract: A cellular phone system, optimizing user demand by charging system subscribers according to a Variable Charge Rate (VCR) that is based on the price elasticity of the subscribers. According to the present invention, the service provider monitors the load in each cell and, for each cell, the service provider continuously determines a charge rate that can be tailored to specific subscriber category according to a number of variables, offering subscribers a VCR that is optimized for the individual cell's capacity and overall system capacity. According to an exemplary embodiment, subscribers may use mobile stations supporting the Short Message Service (SMS) to provide the subscribers with the broadcast VCR. The system can determine, in real time, optimal VCRs for individual cells to maximize revenue generated by the cell for any time of day. The VCRs may be selectively broadcast to the VCR-mobile station to inform subscribers of the current rate of charge for calls.