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SPECTRUM MARKETS
DySPAN Conference, Aachen, Germany
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May 2011
Randall Berry, Michael HonigDepartment of EECSNorthwestern University
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Spectrum Management2
Policy
Economics
CommunicationsEngineering
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Spectrum Management3
Policy
Economics
CommunicationsEngineering
R. Berry, MLHEECS
Rakesh VohraKellogg MEDS
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High Profile Issue
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Chicago TribuneApril 15, 2011
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Why This Tutorial?
Timely and relevant
New policies are needed for spectrum allocation.
Markets are natural policy candidates.
Markets for spectrum pose uniquechallenges/questions.
Definition of property rights, interference externalities
Efficiency, incentives, wireless system design
Interplay between economics and engineering issues
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This Tutorial
Is NOT about
Large-scale spectrum auctions
Related policy issues
Analytical methodology
IS about
Fundamental technical and micro-economic issues andapproaches to defining spectrum rights, markets
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Objectives
Put spectrum markets into policy context (US-centric)
Explain technical challenges and tradeoffs with
defining spectrum property rights
Illustrate with basic models
Describe different types of market structures
Contrast spectrum markets with other spectrumsharing models (commons/white space)
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Background and Motivation (MH)
Spectrum Market Design (RB)Market Organization (MH)
Concluding Remarks (MH)
Outline
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History
Spectrum sharing modelsMotivation for spectrum markets
Background and Motivation
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Limited Supply of Spectrum
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good for cellular(300 MHz to 3 GHz)
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Spectrum Crunch
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Pe
tabytespermon
th
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Regulation Prior to 1927: Open to All
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Earliest uses of wireless forship-to-ship, ship-to-shorecommunications.
Broadcast radio begins in 1921.
Licenses issued by theDepartment of Commerce.
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Two Landmark Cases
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Hoover vs Intercity Radio, 1923United States vs Zenith Radio, 1926
Herbert Hoover,US Sec. of Commerce
Department of Commerce has noauthority to regulate licenses.
Broadcasting boom:200 new stations appeared in < 6 months.
Interference created chaotic radioenvironment.
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Spectrum Property Rights: A False Start
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Congress subsequently passed legislation
prohibiting spectrum property rights
Licenses issued for 90 days.
Tribune vs Oak Leaves
Broadcasting, 1926
Property right allowed basedon homesteading
Interfering stations could be fined.
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Regulation since 1927: Command and Control
Federal Radio Commission (FRC)
established in 1927.
Federal Communications Commission (FCC)
established in 1934.
Maintains authority to
Grant / renew / deny licenses for spectrum use. Assign applications to particular frequencies.
Police content and use
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Regulation since 1927: Command and Control
Federal Radio Commission (FRC)
established in 1927.
Federal Communications Commission (FCC)
established in 1934.
Maintains authority to
Grant / renew / deny licenses for spectrum use. Assign applications to particular frequencies.
Police content and use
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Wise old man approach to spectrum allocation
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The Spectrum Paradox
Spectrum is a scarce resource
Spectrum is underutilized
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Spectrum is a Scarce Resource
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beachfrontpropertyNearly $20B netted for 700 MHz auctions in 2008.
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Spectrum is Underutilized
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Spectrum measurements in New York City and Chicago conducted by Shared Spectrum Co.
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Problems with Command and Control
An economists critique
Requires excessive information overhead Difficult to estimate value (utility) of a frequency
assignment
Encourages rent-seeking and facilitates entry barriers
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An Economists Proposal
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Ronald Coase,
1991 Nobel Laureate in Economics
Introduce spectrum property rights, sell to highestbidders, do not restrict use.
R. Coase, The federal communications commission,
J. Law and Economics, pp. 140, 1959.
Coases Theorem: In the absence of transactioncosts, spectrum owners will trade rights so that theoutcome allocates spectrum to best use.
Role of government should be to minimize transaction costs.
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An Economists Proposal
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Ronald Coase,
1991 Nobel Laureate in Economics
Introduce spectrum property rights, sell to highestbidders, do not restrict use.
R. Coase, The federal communications commission,
J. Law and Economics, pp. 140, 1959.
Spectrum auctions finally introduced in the 1990s.Restrictions on use remain.
Coases Theorem: In the absence of transactioncosts, spectrum owners will trade rights so that theoutcome allocates spectrum to best use.
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Problems with Command and Control
An economists critique:
Requires excessive information overhead
Difficult to estimate value (utility) of a frequency assignment
Encourages rent-seeking and facilitates entry barriers
An engineers critique:
Demand for different applications varies over time andgeographic locations.
Static assignments cannot exploit statistical multiplexing.
New technologies can facilitate more efficient spectrumsharing.
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Engineering Approach to Spectrum Crunch
Add intelligence to mobiledevices Frequency agility
Wideband sensing
Interference avoidance
Adaptive quality of service(context aware)
Enables spectrum scavengingCognitive Radio
Mitola and Maguire (1999)
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History
Spectrum sharing models
Motivation for spectrum markets
Background and Motivation
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Spectrum Sharing Models
Exclusive use
Commons
Hierarchical
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30 Exclusive Use
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Spectrum owned by government
Licensed to particular application,service provider
Rigid use rules
Spectrum is private property
Applications, technical constraintsdecided by markets
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31 Exclusive Use
Liberal licenses Spectrum publicly owned, but licenses can be transferred,
liberal use rules
Secondary markets (2003)
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Spectrum owned by government
Licensed to particular application,service provider
Rigid use rules
Spectrum is private property
Applications, technical constraintsdecided by markets
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32 Spectrum Commons
State-regulated Spectrum owned by government
Etiquette rules part of industry standard (802.11)
Privately owned Owner sets rules, polices band Revenue from selling approved equipment
Unlicensed Requires etiquette rules
for sharing
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33 Hierarchical
State-regulated Spectrum owned by government Use rules for secondary users part of standard (802.22)
Private contracts with spectrum scavengers Interference levels/payments set by mutual agreement
Primary and secondary users
Secondary users must notdisrupt primary users
Relies on cognitive radio
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34 Hierarchical: Technologies
Underlay: low-power, spread spectrum forsecondary users
Overlay: exploit white spaces left by primary users
Primary and secondary users
Secondary users must notdisrupt primary users
Relies on cognitive radio
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35 Hybrid Models
Spectrum designated for exclusive use could beoperated as a commons and/or with secondaryusers.
Underlay/overlay can be used to facilitate furthersharing.
Spectrum scavenging can increase utilization.
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Current Allocations Mix of:
restricted use bands (e.g., broadcast TV) liberalized licenses (cellular)
state-regulated commons (WiFi)
Active trading of liberalized licenses amongcommercial service providers About 10 billion MHz-pops annually since 2003
[Mayo & Wallsten `10]
US Policy trends have favored assignments of unlicensedspectrum over liberalized licenses 955 MHz unlicensed vs 422 MHz licensed in the US (2008)
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37 Why Unlicensed Spectrum?
Pushed by DARPA
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38 Why Unlicensed Spectrum?
Pushed by DARPA Military needs distributed, dynamic methods for
spectrum sharing across military units
Also by Google, Apple Facilitates 3rd-party software applications
Success of WiFi Interference not a major issue for local coverage,
light loads
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40 Engineering Issues
Difficult to guarantee Quality of Service Limits applications
Problems with secondary user model Sensing problematic, constraints compromises utility
WiFi does not scale; inappropriate for wide-area
data in urban settings
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41 Economic Issues
No means for reallocating spectrum to applicationswith higher utility
e.g., wide-area data with coordinated interferencemanagement
No direct means to move incumbent applications toanother band/wireline service
e.g., wireless mics, broadcast TV
Congestion effects may adversely affect competitionamong licensed service providers (more later)
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The Case for Liberal Licenses
Provides incentives for service providers to invest in
infrastructure for wide-area coverage, interferencemanagement [Hazlett, 2010]
Over $20B annual network capital expenditures
Virtually no infrastructure investments for unlicensedbands (U-PCS, 3.5 GHz WiMax band)
Previous issues substantial opportunity costs for
unlicensed spectrum Liberal licenses allow private commons, scavenging
So far, not economically attractive
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Are Secondary Markets Active?
Service providers are not issuing short-term leases.
Companies with spectrum (e.g., Boeing) are notreselling.
But There are active markets for:
transferring large blocks of spectrum among
service providers, wholesale use of spectrum and infrastructure
(e.g., Kindle)
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Current State of Affairs
Large parts of the useful spectrum remain underutilized.
Restricted supply of spectrum with liberalized licenses.
Cellular spectrum is extremely expensive.
Service providers encouraged to build out national footprint.
Fosters the development of expensive (spectrally efficient)systems.
Unlicensed spectrum is increasing.
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Do We Need Spectrum Markets?48
NU, April 2009
A more fundamental question:
Is spectrum scarce or abundant?
Spectrum is abundantuse Commons Model
Spectrum is scarce:
Commons modeltragedy of the commons
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Rate Calculation
Extensive spectrum sharing
Roughly 1 GHz between 150 MHzand 3 GHz
Cellular Infrastructure
System Assumptions
No intra-cell interference
(time-division multiplexing)
Limited inter-cell interference.
All users are active all the time.
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S S Ab d ?
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Is Spectrum Scarce or Abundant?
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2 Mbps per user seems like a lot, but recall the
assumptions:
1 GHz of shared bandwidth, no fading
Infrastructure of access points (200 m radius)
Optimized frequency reuse
Spectrally efficient modulation
Also, less expensive spectrum encourages lower-cost,spectrally inefficient systems.
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C M k
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Commons vs Market
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Spectrum price ($/Hz)
cost of interference < market transactions costs Use commons model
Quantityofspectrum(Hz
)Spectrum marketCommons
supply
demand
p*
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Asset Design
Market Mechanisms
Examples
Market Design
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Interference
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Interference
A key issue for spectrum is defining propertyrights regarding interference.
Some possibilities:
Limits on received power
Limits on transmitted power Cognitive approaches
Flexible limits negotiated via bargaining.
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or
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Asset Specifications
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Asset Specifications
Spatial/temporal scales Frequency scale
Power allocation
Amount of sharing Interference management
Device or
Technology
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Asset Design
Market Mechanisms
Examples
Market Design
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Pathological Example?
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g p
No.
Myerson-Satterthwaite theorem shows that withprivate information, under very general conditions
there is no way for two parties to trade that is
efficientand individually rational.
Suggests market design matters.
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Example: 2nd Price Auction
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Mechanism:
Users submit bids.Mechanism allocates good to highest bidder
Users pay 2nd highest bid.
Users can be viewed as playing a non-cooperativegame.
Use equilibrium concepts from game theory to studyperformance.
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Outcome
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2nd Price
Auction
$4
$2
Pays $2
Pays noting
A Little Terminology
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2nd price auction is a direct revelation mechanism.
Ask agents to bid their valuation
A direct revelation mechanism is incentive
compatible if truth-telling is weakly dominant.
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Revelation Principle
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Loosely, an equilibrium obtained under anymechanism can be obtained by an incentivecompatible, direct revelation mechanisms.
In terms of characterizing possible outcomes, wlogwe can consider only direct revelation, incentivecompatible mechanisms.
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Vickrey-Clarke-Groves (VCG)
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VCG mechanisms generalize 2nd price auction toarbitrary goods.
Incentive compatible, direct revelation mechanism with the
efficient outcome.
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Dynamic Interference Free Allocation9595
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Let agents bid on every asset.
Allocate an interference free set of assets with thehighest bids.
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2
1 3
4
5
$3, $5, $2
$1, $2, $1
$1, $1, $1
$7, $5, $3
$2, $1, $2
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VCG payments9797
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Consider Agent 1?
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2
1 3
4
5
$3, $5, $2
$1, $2, $1
$1, $1, $1
$7, $5, $3
$2, $1, $2
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VCG Payments9999
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Consider Agent 1
Remove Agent 1s bids
Re-calculate allocation
Payment = (6-2) + (2-0) = $6
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1 3
4
5
$5, $2
$2, $1
$1, $1
$5, $3
$1, $2
Dynamic Interference Free Allocation100
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Overhead: linear in number of assets.
Complexity: NP-hard!
Need to find multiple maximum weight independent sets.
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4
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Approximations102
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Consider a greedy approximation:
Order assets by bids and assign from highest to lowest
if possible.
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1 3
4
5
$3, $5, $2
$1, $2, $1
$7, $5, $3
$2, $1, $2
2
$1, $1, $1
5
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Truthful Approximation104
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Issue with previous algorithm is that VCG paymentsare not suitable for approximate allocations.
For some cases can get truthful approximations by
changing payments charged to each agent.
E.g. VERITAS (Zhou,Gandhi,Sur,Zheng 08)
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Costs110
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Costs:
Remains NP-hard even if interference costs are
constrained to be no greater than an arbitrarily smallfraction of the revenue.
Reduction from graph partitioning.
Constraining the topology?
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Linear Relaxation112
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Prop. If G is a line, the LP is totally unimodular. Also can solve efficiently if G is a ring.
Some Simple Approximations
A 1/((G) +2) approximation
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A 1/( (G) +2)-approximation: Solve LP.
Divide zjji
variables into (G) +1 sets {Wi} so that adjacentedges are in different sets. Let W0 be set of all xij variables.
Find the set of variables that contribute the most to the objectiveof the LP.
Round these to best integer solution & set other variables to anyconsistent values.
A greedy approximation: give each asset j to agent with largest rij. gives (1+ 2) approx. where = max ratio of interference costs
to rijs.
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Secondary User Model115
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Boundary region Zsupports only secondary usersthat must notinterfere with a different primary users in A or B.
Agent igets revenue rij from assetj {A, B}
Agent igets revenue ABi from cell boundary Z
Agent igets additional revenue ZAi from owning both Zandneighboring asset A.
Asset A Asset BBoun
dary
Z
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Secondary User Model116
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In full network, create one
boundary region for eachpair of assets.
Secondary users occupyone or more boundaries.
Allow users to be bothprimary or secondary.
Again optimal allocation issolution to an integerprogram.
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Another Alternative Model
S f did t if h i t f d d
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So far did not specify how interference reducedbetween assets.
Suppose assets correspond to cells.
Interference controlled by adapting the boundary ofcells.
But this effects all neighbors.
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Interference Region120
L
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L
coverage radiusRiA [0, L/2]
Agent can adjust coverage radius by changing the power.
Value is proportional to area: riA = 4wiA RiA2 .
Area reduced by interference footprint of neighbor.
Cell A
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Bit Pipe Model
Wholesale contract with cellular provider
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p
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Kindle
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Bit Pipe Model: Properties
Wide-area coverage, high mobility
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Interference management
Quality of Service guarantees
Facilitates new wide-area wireless services
Well-matched to lower frequency assignments
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Higher Frequencies
Wide-area coverage becomes difficult
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Interference management becomes easier
Possibility for distributed, dynamic spectrum
assignments
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Owning vs Leasing135
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Owned spectrum asset has
unlimited time duration;traded as property (e.g., land).
Leased spectrum asset has limited
time duration;available through local spot market
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Owning vs Leasing136
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Owned spectrum asset has
unlimited time duration;traded as property (e.g., land).
Leased spectrum asset has limited
time duration;available through local spot market
Owners can deploy services or rent / lease spectrum assets. Service providers need not be spectrum owners!
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Two-Tier Spectrum Market137
location 3.5 GHz 3.7 GHz3.6 GHzband
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Owner A Owner B Owner A
Owner A Owner B Owner A
Owner A Owner C Owner C
cell
Owners A, B, C,
Spectrum Broker
Service providers(Acme Wireless)
Service requests
1
5
34
2
8
67
9
10
cell
cell
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Lower-Tier Spot Market: Properties139
Spectrum Broker
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Owners A, B, C,
Spectrum Broker
Service providers(Acme Wireless)
Immediate access, rapid (automated) transactions
Low transaction costs
Facilitates local services No need to build out large footprint
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Spectrum Contracts141
Spectrum Broker
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Owners A, B, C,
p
Service providers(Acme Wireless)
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Contracts can be arranged across: Frequency (spread spectrum, underlay)
Locations (mesh networking)
Time (time-of-day, futures, scavenging)
Variable QoS guarantees (statistical)
Integration142
Spectrum Broker
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Owners A, B, C,
p
Service providers(Acme Wireless)
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Broker may integrate allocation of Access points (property leases)
Equipment
Spectrum Lowers entry barriers for new service providers
Commons versus Market143
) Spectrum marketCommons
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Spectrum price ($/Hz)
Commons/market boundary depends on associatedcosts.
Quan
tityofspectrum
(Hz Spectrum marketCommons
supply
demand
p*
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Commons versus Market145
z) Spectrum marketCommons
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Spectrum price ($/Hz)Quan
tityofspectrum
(Hz Spectrum marketCommons
supply
demand
p*
cost of interference < market transactions costs Use commons model
May 2011
Commons versus Market146
z) Spectrum marketCommons
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Can we shift the boundary to the right with distributedinterference management schemes?
Spectrum price ($/Hz)Quan
tityofspectrum
(Hz p
supply
demand
p*
May 2011
Local Transactions147
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Routers use the same channel, cause little interference
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Local Transactions148
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Would cause excessive interference.
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Deterence Price149
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$ $
Pay new user to not setupaccess point in exchange forsharing capacity.
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Usage Price150
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$ $
Set up community ofaccess points, charge fee forsharing capacity (Fonera).
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Pricing and Efficiency151
$ ??? $
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Deployment game: each user decides whether or not to setupan access point given a fixed deterrence price from neighbors.
Deterrence pricing can substantially increase efficiency,
mitigate interference [Bae et al, DySPAN `09] .
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$
Setup access point or share?
??? $
May 2011
Competition with a Commons152
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Analysis of white space policy
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TV White Space
FCC recently announcedrules for use as unlicensed
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u es o use as u ce sed
commons Devices must check data
base to see if spectrum is
available before using.
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TV White Space
FCC recently announcedrules for use as unlicensed
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commons Devices must check data
base to see if spectrum is
available before using.
Advocates: lowers entry barriers for new services
Detractors: tragedy of the commons
May 2011Spectrum Markets Tutorial, DySPAN Conference
Observations
Lower frequencies than WiFi longer propagation
better coverage
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more interference
Incumbents will compete with services in TV whitespace.
May 2011Spectrum Markets Tutorial, DySPAN Conference
Observations
Lower frequencies than WiFi longer propagation
better coverage
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more interference
Incumbents will compete with services in TV whitespace.
How will additional white space affect service
providers and consumers?
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Scenario157
SP 3SP 1 SP 2
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frequency
Incumbent service providers (SPs) have exclusivelicensed bands.
Scenario158
SP 3SP 1 SP 2 commons
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Incumbent service providers (SPs) have exclusivelicensed bands.
All incumbents and new entrants have access to commons(unlicensed band).
How does this additional spectrum affect total welfare?
Analyze using framework for competition in congestedmarkets [Acemoglu, Ozdaglar `07]
frequency
Model: Summary159
SP 3SP 1 SP 2 commons
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Each SP competes for pool of customers byannouncing prices for licensed and unlicensed
services.
Customers choose SP based on
Total price = Announced price + Congestion cost
frequency
Results: Summary160
SP 3SP 1 SP 2 commons
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The equilibrium price of commons spectrum is zero.(Total price = congestion cost)
Adding unlicensed spectrum can decrease totalwelfare (consumer + SP revenue).
Happens over a substantial range of unlicensed
bandwidth.
frequency
Model: Revenue161
SP 3SP 1 SP 2 commons
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frequency
Each SP i chooses prices to maximize revenue:
i= p
iq
i+p
i
wqi
w
pi : price for licensed band
piw : price for unlicensed band
qi , qiw : quantity of customers served
Model: Congestion162
frequency
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May 2011Spectrum Markets Tutorial, DySPAN Conference
Customers in band i experience a congestion (latency)cost l(q
i
), which is increasing convex.
Customers in commons experience a congestion costlw(q
w), where qw includes all unlicensed users.
Total (delivered) price in band i:piw+ l(qi)
frequency
`(q3)`(q1) `(q2)`w(P
i qwi )
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Total Welfare: Monopoly SP164
Demand curvePrice
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Quantity q(customers served)
To
talp
rice
*
q*
*maximizes revenue
Total Welfare: Monopoly SP165
Demand curvePrice
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Quantity q(customers served)
To
talp
rice
*
q*
`(q)
`(q)
*maximizes revenue
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Total Welfare: Two SPs167
Demand curvePrice
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*maximizes revenue
To
talpr
ice
*
P1*
P2*
q1* q2* Quantity q(customers served)
consumersurplus
`(q)
SP 2s revenue
Price of Unlicensed Spectrum
In equilibrium announced price is zero.*
Otherwise SP can increase revenue by lowering.
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Total price of unlicensed spectrum is congestion cost.
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*Similar observation in [Maille, Tuffin, Vigne `10]
Total Welfare: SPs Plus Commons169
Demand curvePrice
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*maximizes revenue
To
talpr
ice
*
P1* P2*
q1* q2*Quantity q(customers served)
consumersurplus
`w(q)
SP 2s revenue
qw*
Total Welfare vs Commons Bandwidth170
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Multiple identical incumbents
Box-shape demand
May 2011Spectrum Markets Tutorial, DySPAN Conference
commons bandwidth
Tota
lWe
lfare
Single Incumbent
Box inverse demand
171
Demand curve`(q)
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Linear latency
May 2011Spectrum Markets Tutorial, DySPAN Conference
qw*q1*
To
talprice
*
`w(q)
Single Incumbent
Theorem: As the capacity C of the commons spectrum increases,there exists constants C1, C2 such that
1. For C
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12. For C1
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The SP increases its revenue by raising itsannounced price:
Extracts additional surplus from its remaining customers
Increases congestion in the commons (zero welfare)
For a single incumbent consumer welfare increaseswith bandwidth.
May 2011Spectrum Markets Tutorial, DySPAN Conference
Heterogenous Customers
Customers may have different trade offs betweenannounced price and delay.
C h ld h l diff i d l l
174
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Commons should help differentiate delay-tolerantfrom delay-sensitive customers.
Does the previous scenario still occur?
May 2011Spectrum Markets Tutorial, DySPAN Conference
Heterogenous Customers
Customers may have different trade offs betweenannounced price and delay.
C h ld h l diff ti t d l t l t
175
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Commons should help differentiate delay-tolerantfrom delay-sensitive customers.
Does the previous scenario still occur?
Yes, SP may raise price to offload low-end customers towhite space (zero welfare), extract more surplus from
high-end customers
Here customer surplus can also decrease.
May 2011Spectrum Markets Tutorial, DySPAN Conference
Example: Total Welfare176
Total welfare
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Capacity
Single incumbent Box demands
Observations
Decrease in total welfare is analogous to Braesssparadox in transportation networks.
T id t t i t t t i
177
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To avoid, must restrict entry to commons, or priceentry.
Possible enhancements of model:
More general demand/latency functions
Investment costs
Deployment geometry
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Implications for wireless system design
Concluding Remarks178
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Implications for wireless system design
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Spectrum Management: Two Views
Spectrum is abundant
It is just poorly managed
Previous computation:
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Previous computation:1 to 2 Mbps available in urban areas,
but did not account for shrinking cell sizes,
offloading traffic to WiFi, Femto-cells
Unlicensed commons should meet future needs
Latency in commons band will be small enough so that
previous inefficiencies do not arise.
May 2011Spectrum Markets Tutorial, DySPAN Conference
Spectrum Management: Two Views
Spectrum is abundant
It is just poorly managed
Unlicensed commons should meet future needs
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Unlicensed commons should meet future needs Latency in commons band will be small enough so that
previous inefficiencies do not arise.
Spectrum will remain scarce
Applications will be generated to use new spectrum
Shift to cheaper, spectrally inefficient technologies
Unlicensed model is unsuitable for low frequencies
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Managing Spectrum Scarcity181
Bit Pipe(< 1 GH ) Commons(> 3 GH )
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Coordinatedinterferencemanagement
Expensive
infrastructure
May 2011Spectrum Markets Tutorial, DySPAN Conference
Bit Pipe(< 1 GHz) Commons(> 3 GHz)
Distributedinterferencemanagement
(random access)
Inexpensive
Frequency
Managing Spectrum Scarcity182
Bit Pipe(< 1 GH ) Dynamic SpectrumM k t Commons(> 3 GH )
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Coordinatedinterferencemanagement
Expensive
infrastructure
May 2011Spectrum Markets Tutorial, DySPAN Conference
Bit Pipe(< 1 GHz)
Distributedinterferencemanagement
(random access)
Inexpensive
Dynamic SpectrumMarkets
Local interferencemanagement
Spectrum servers
Rapid transactions
Frequency
Commons(> 3 GHz)
Managing Spectrum Scarcity183
Bit Pipe
(< 1 GH ) Dynamic SpectrumMarketsCommons
(> 3 GH )
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Macro-cells Wide-area
coverage
Expensiveservice plans
May 2011Spectrum Markets Tutorial, DySPAN Conference
(< 1 GHz)
Local coverage Femto-cells/WiFi
Inexpensive
Dynamic SpectrumMarkets
Micro-cells Limited coverage
Local services
Frequency
(> 3 GHz)
Spectral Efficiency Objective
Wireless systems engineering has put a premium onspectral efficiency (bits/sec/Hz).
Remarkable progress:
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Remarkable progress: Practical coding techniques that achieve close to the
Shannon bound
Creation and exploitation of degrees of freedom:frequency (OFDM), multiple antennas (MIMO),cooperative relays
Opportunistic resource allocation
Advances in signal processing capabilities
Spectrum Markets Tutorial, DySPAN Conference May 2011
Transition to Spectrum Abundance
Tradeoff between spectrum efficiency and powerefficiency
Shift emphasis towards low-power, inexpensive widebandi li h i
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p p , psignaling techniques
Efficiency becomes limited by transaction costs
Distributed interference management(pricing, auctions, local exchange)
Transparent (standardized?) mechanism for spot markets
Wireless devices: frequency agile, compatible with spotmarket mechanism, used by multiple service providers
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Many Remaining Challenges186
Policy
Economics
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co o cs
Engineering
Interference managementIncentives, efficiencyMarket design
Many Remaining Challenges187
Policy
Economics
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Spectrum Markets Tutorial, DySPAN Conference May 2011
Engineering
Interference managementIncentives, efficiencyMarket design
Transition to spectrum markets??