A look at the economics of dynamic spectrum access: Pricing for profitability - 04/29/2011

Murat Alanyali

Title: A look at the economics of dynamic spectrum access: Pricing for profitability

Technological and regulatory evolution suggests that radio spectrum will be accessed in dramatically different ways than it is today. On the one hand, wireless terminals gain adaptive capabilities that eliminate artificial fragmentation of spectrum. On the other hand, full property rights through secondary market initiatives allow free trading of spectrum, possibly in a wide range of time-scales and modalities. The emerging image of future wireless communications motivates consideration of spectrum as a spatially reusable asset with demand-based, dynamic allocation.

In this talk we will summarize the recent regulatory process surrounding spectrum markets, and provide an analytical perspective to pricing of dynamic spectrum access. The main conclusion of the latter discussion is an insensitivity property of profitability: provision of secondary service is profitable if the price is set right, irrespective of any underlying price-demand relationship. Such a property amounts to profitability guarantee for spectrum providers and thereby it has practical bearing on viability of dynamic spectrum markets.

-- JiaxiJin - 28 Apr 2011