Market Structures for Efficient Spectrum Sharing

Northwestern University, Evanston IL

Investigators

Abstract

Dramatic changes in the ways wireless spectrum is allocated and utilized are needed to support the projected growth in mobile broadband access. This will require both innovations in new technologies as well as in the market structures used to deploy these technologies. These two issues are inherently joined. New wireless technologies will establish the "ground rules", which govern how markets for spectrum access can operate. Market structures will determine which technologies are deployed and the resulting economic benefit. The cross-disciplinary study of such market structures and the related spectrum sharing technologies is the focus on this project. Market models are being developed that take into account both the economic incentives of service providers as well as basic wireless networking considerations such as the management of interference. These models are being used to determine the effect of market structures on incentives for pricing, trade, and investment in new technologies and infrastructure, entry barriers, and competitive forces. A range of spectrum sharing scenarios are considered including allowing for open access to spectrum bands, capacity sharing among providers and trading licenses on a spot market. A parallel goal of the project is to publicize the potential benefits and challenges associated with spectrum markets to the broader communications and networking communities.