The Value of Sharing Intermittent Spectrum

Recent initiatives by regulatory agencies to increase spectrum resources available for broadband access include rules for sharing spectrum with high-priority incumbents. We study a model in which wireless Service Providers (SPs) charge for access to their own exclusive-use (licensed) band along with access to an additional shared band. The total, or delivered price in each band is the announced price plus a congestion cost, which depends on the load, or total users normalized by the bandwidth. The shared band is intermittently available with some probability, due to incumbent activity, and when unavailable, any traffic carried on that band must be shifted to licensed bands. The SPs then compete for quantity of users. We show that the value of the shared band depends on the relative sizes of the SPs: large SPs with more bandwidth are better able to absorb the variability caused by intermittency than smaller SPs. However, as the amount of shared spectrum increases, the large SPs may not make use of it. In that scenario shared spectrum creates more value than splitting it among the SPs for exclusive use. We also show that fixing the average amount of available shared bandwidth, increasing the reliability of the band is preferable to increasing the bandwidth.

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