article

Pricing strategies for spectrum lease in secondary markets

Authors:

Ashraf Al Daoud,

Murat Alanyali,

David StarobinskiAuthors Info & Claims

IEEE/ACM Transactions on Networking (TON), Volume 18, Issue 2

Pages 462 - 475

https://doi.org/10.1109/TNET.2009.2031176

Published: 01 April 2010 Publication History

Abstract

We develop analytical models to characterize pricing of spectrum rights in cellular CDMA networks. Specifically, we consider a primary license holder that aims to lease its spectrum within a certain geographic subregion of its network. Such a transaction has two contrasting economic implications: On the one hand the lessor obtains a revenue due to the exercised price of the region. On the other hand, it incurs a cost due to: 1) reduced spatial coverage of its network; and 2) possible interference from the leased region into the retained portion of its network, leading to increased call blocking. We formulate this tradeoff as an optimization problem, with the objective of profit maximization. We consider a range of pricing philosophies and derive near-optimal solutions that are based on a reduced load approximation (RLA) for estimating blocking probabilities. The form of these prices suggests charging the lessee in proportion to the fraction of admitted calls.We also exploit the special structure of the solutions to devise an efficient iterative procedure for computing prices. We present numerical results that demonstrate superiority of the proposed strategy over several alternative strategies. The results emphasize importance of effective pricing strategies in bringing secondary markets to full realization.

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Cited By

Sanchis-Cano AGuijarro LPla VVidal J(2021)Duopoly Provision of Services Based on Wireless Sensor-supplied Data: a Differential Game ModelMobile Networks and Applications10.1007/s11036-018-1128-626:2(512-522)Online publication date: 1-Apr-2021
https://dl.acm.org/doi/10.1007/s11036-018-1128-6
Moscholios IVassilakis VLogothetis MBoucouvalas A(2017)State-Dependent Bandwidth Sharing Policies for Wireless Multirate Loss NetworksIEEE Transactions on Wireless Communications10.1109/TWC.2017.271215316:8(5481-5497)Online publication date: 1-Aug-2017
https://dl.acm.org/doi/10.1109/TWC.2017.2712153
Basaure AHolland O(undefined)Optimizing spectrum value through flexible spectrum licensing2015 IEEE International Symposium on Dynamic Spectrum Access Networks (DySPAN)10.1109/DySPAN.2015.7343897(130-141)
https://dl.acm.org/doi/10.1109/DySPAN.2015.7343897

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Pricing strategies for spectrum lease in secondary markets

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Published In

cover image IEEE/ACM Transactions on Networking

IEEE/ACM Transactions on Networking Volume 18, Issue 2

April 2010

339 pages

ISSN:1063-6692

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IEEE Press

Publication History

Published: 01 April 2010

Revised: 14 August 2008

Received: 03 October 2007

Published in TON Volume 18, Issue 2

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Cited By

Sanchis-Cano AGuijarro LPla VVidal J(2021)Duopoly Provision of Services Based on Wireless Sensor-supplied Data: a Differential Game ModelMobile Networks and Applications10.1007/s11036-018-1128-626:2(512-522)Online publication date: 1-Apr-2021
https://dl.acm.org/doi/10.1007/s11036-018-1128-6
Moscholios IVassilakis VLogothetis MBoucouvalas A(2017)State-Dependent Bandwidth Sharing Policies for Wireless Multirate Loss NetworksIEEE Transactions on Wireless Communications10.1109/TWC.2017.271215316:8(5481-5497)Online publication date: 1-Aug-2017
https://dl.acm.org/doi/10.1109/TWC.2017.2712153
Basaure AHolland O(undefined)Optimizing spectrum value through flexible spectrum licensing2015 IEEE International Symposium on Dynamic Spectrum Access Networks (DySPAN)10.1109/DySPAN.2015.7343897(130-141)
https://dl.acm.org/doi/10.1109/DySPAN.2015.7343897

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