MARTIN WEISSSCHOOL OF INFORMATION SCIENCES

UNIVERSITY OF PITTSBURGHMBW@PITT.EDU

Spectrum markets: Challenges Ahead

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General viewpoint

Despite liberalization (e.g., Australia), why haven’t spectrum markets become visible?

Transaction costs matter Liquidity Enforcement

Secondary user/entrant viewpoint is critical What are the application requirements?

QoS Spatial configuration

What are the alternatives?Focus has been on “naked spectrum”

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©Mark Hurst. Used with permission

Starting context

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Entrant’s context

Choice parameters Exclusive or shared access? Permanent license via primary market (or

administrative assignment)?Dimensions of choice

Non-Cooperative Cooperative

Primary • WiFi • License trading/ Secondary markets

Secondary • Opportunistic use• TV White Spaces• UWB

• MVNO• Secondary use

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What are spectrum holes good for?

Non-cooperative Cooperative

Temporal

Static • Elastic & inelastic • Elastic & inelastic

Periodic • Elastic• Inelastic w. extra

channel (maybe)

• Elastic• Inelastic w. extra

channel (maybe)

Stochastic • Elastic• Inelastic

• QoS = f(spectrum hole density)

• Elastic• Inelastic

• QoS = f(price)

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What types of market mechanisms are appropriate for trading spectrum?

Spectrum access is a complex good/serviceWhat are valued attributes of a trading

mechanism? Anonymization? Low transaction costs? Speed? Others?

Alternatives Bi-lateral bargaining Brokerages Exchanges

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What technical restrictions should be placed on spectrum rights/users/service providers?

Participants need mechanisms to support Transaction audits Execution enforcement

Some standards might prove valuable Spectrum sharing protocols Negotiation protocols/channels

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Will spot markets for spectrum exist in 10 years?

Depends on Liquidity Transaction costs

Enforcement Trust

Transaction support Exchange/brokers Clearing mechanisms Standard trading unit Price reporting

Best chances in the near term Limited-scope opportunities

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What role might spectrum sensing/cognitive radio play in spectrum markets?

Software radios are essential Cost reduction is critical going forward Wide tuning range is desirable, which is challenging for antenna

and RF front end designSensing is hard and costly

You have to know what you’re looking for to find it Cooperative sensing has density and correlation problems

Secondary markets Licenses are traded Sensing is focused on enforcement

Secondary use Sensing may be useful if multiple secondary users share temporary

licenses Enforcement

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Questions?

http://www.webwhispers.org/news/apr2005.htm