Investing in shared spectrum

Chang Liu, Sihua Fu, Randall A. Berry

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

Sharing spectrum is a promising approach for expanding wireless access and increasing competition among wireless service providers. Indeed, this is a key motivation behind the recent regulations such as those for the 3.5 GHz band in the U.S. However, meeting this promise requires that service providers (SPs) have the incentives to invest in technology to be deployed in shared bands. This is not a forgone conclusion. Indeed by lowering entry barriers, sharing can promote more competition, but this also lowers revenue, making investment less attractive. In this paper, we study such scenarios for band of spectrum that is shared under a primary-secondary paradigm, by adopting a model developed by Liu and Berry in 2014. In their model, a primary SP and multiple secondary SPs compete for a common pool of customers using a shared band. In that work, any investments of the SPs was considered sunk, and it was shown that sharing improved both social welfare and consumer welfare over the case where the band was exclusively licensed to one SP. Here, we add an investment stage to this model, in which all of the SPs first decide on an investment level; given their investments, they again compete for customers. We characterize the sub-game perfect equilibrium of the resulting game and characterize the resulting consumer and social welfare. We show that a secondary SP needs a lower investment cost than a primary in order to enter the market. Moreover, at most one secondary SP will enter, even if multiple have low costs. Finally, we show that for large enough bandwidth, assigning the SP with the lower investment cost as the primary can provide more social welfare and consumer welfare than making it a secondary.

Original languageEnglish (US)
Title of host publication2017 IEEE International Symposium on Dynamic Spectrum Access Networks, DySPAN 2017
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781509028306
DOIs
StatePublished - May 5 2017
Event2017 IEEE International Symposium on Dynamic Spectrum Access Networks, DySPAN 2017 - Baltimore, United States
Duration: Mar 6 2017Mar 9 2017

Publication series

Name2017 IEEE International Symposium on Dynamic Spectrum Access Networks, DySPAN 2017

Other

Other2017 IEEE International Symposium on Dynamic Spectrum Access Networks, DySPAN 2017
CountryUnited States
CityBaltimore
Period3/6/173/9/17

ASJC Scopus subject areas

  • Computer Networks and Communications

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