1. MARTIN WEISS SCHOOL OF INFORMATION SCIENCES UNIVERSITY OF PITTSBURGH MBW@PITT.EDU Spectrum markets: Challenges Ahead

2. 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. 3 ©Mark Hurst. Used with permission Starting context

4. Entrant’s context 4 Choice parameters  Exclusive or shared access?  Permanent license via primary market (or administrative assignment)? Dimensions of choice

5. 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)

6. 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

7. 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

8. 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

9. 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

10. Questions? 10 http://www.webwhispers.org/news/apr2005.htm