MARTIN WEISS SCHOOL OF INFORMATION SCIENCES UNIVERSITY OF PITTSBURGH Spectrum markets: Challenges Ahead
General viewpoint 2 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”
3 ©Mark Hurst. Used with permission Starting context
Entrant’s context 4 Choice parameters Exclusive or shared access? Permanent license via primary market (or administrative assignment)? Dimensions of choice
What are spectrum holes good for? 5 Non-cooperativeCooperative Temporal Static 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)
What types of market mechanisms are appropriate for trading spectrum? 6 Spectrum access is a complex good/service What are valued attributes of a trading mechanism? Anonymization? Low transaction costs? Speed? Others? Alternatives Bi-lateral bargaining Brokerages Exchanges
What technical restrictions should be placed on spectrum rights/users/service providers? 7 Participants need mechanisms to support Transaction audits Execution enforcement Some standards might prove valuable Spectrum sharing protocols Negotiation protocols/channels
Will spot markets for spectrum exist in 10 years? 8 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
What role might spectrum sensing/cognitive radio play in spectrum markets? 9 Software radios are essential Cost reduction is critical going forward Wide tuning range is desirable, which is challenging for antenna and RF front end design Sensing 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
Questions? 10