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Techno-Economics of Spectrum Sharing
Dr. V. SridharProfessor
International Institute of Information Technology [email protected]
16 June 2015Workshop on Spectrum Sharing 1
Dr. Rohit PrasadProfessor
Management Development Institute, [email protected]
Networks of Today vs. Tomorrow
16 June 2015Workshop on Spectrum Sharing 2
Wi-Fi Hotspot
Femto Cell
LTE-U LTE-Direct
GSM, WCDMA, LTE
Long Range, Low Density
Femtocell
Today's Wireless Infrastructure: Optimized for Coverage
WiFi Microcell
Emerging Wireless Infrastructure: Optimized for Aggregate Capacity
Short Range, High Density
Macro Network: WCDMA/LTE
Licensed Spectrum Unlicensedspectrum
Spectrum rights not transferred Spectrum rightstransferred
Between Operators
Between Operators AND
other entities
Exclusive use Intra and inter circle roaming Spectrum leasing,
MVNO
Trading,Acquisitions
NA
Non-exclusive use
Spectrum Sharing(pooling)
License Shared Access (LSA), DynamicSpectrum Access (DSA), Spectrum Access System (SAS), TV White Space ( TVWS)
NAWi-Fi, LTE-U
Taxonomy of Spectrum Arrangements
16 June 2015Workshop on Spectrum Sharing 3
∗ The advantages of non-exclusive use stem from economies of scale
∗ They can persist in the presence of a certain amount of negative impact of shared use
∗ Over-use is not defined by stepping on each other’s toes but by reducing the incremental benefit below opportunity cost
∗ Example∗ 5 operators∗ Each has investible surplus of $ 100∗ Govt. bonds 13%
The Economics of Congestion
16 June 2015Workshop on Spectrum Sharing4
The Managed Commons
16 June 2015Workshop on Spectrum Sharing 5
No. of operators
Value of business at the end of year 1
Average Revenue per operator
Total revenue
Marginal revenue ( increase in total revenue for additional operator)
Excess of marginal revenue over interest from bank
1 132 32 32 32 192 127 27 54 22 93 117 17 51 -3 -164 112 12 48 -3 -165 109 9 45 -3 -16
Open access : overgrazing – tragedy of commonsManaged commons – 2 operators, surplus is 54. Toll : between $4 and $14
Private Property
16 June 2015Workshop on Spectrum Sharing 6
No. of operators
Value of business at the end of year 1
Average Revenue per operator
Total revenue
Marginal revenue ( increase in total revenue for additional operator)
Excess of marginal revenue over interest from bank
1 132 32 32 32 19
2 122 22 44 12 -13 117 17 51 7 -64 112 12 48 -3 -165 109 9 45 -3 -16
Loss of economies of scale with private propertyOptimal number of grazers reduces to 1. With 2 grazers, the surplus drops from 54 to 44Managed commons > Private property > Open access
∗ Spectrum Trading (TRAI, Jan 2014)∗ Only between CMTS/UASL/UL(AS)/UL licensees∗ In the specified block sizes (i.e. 5 MHz in 2100)∗ Bands assigned through auction or for which One-Time-Fee has been paid
for administratively assigned blocks∗ Spectrum Sharing (TRAI, July 2014)
∗ Only between spectrum holders∗ Sharing part of spectrum in part of LSA will still be considered as sharing
entire spectrum holding in the whole of LSA for SUC calculations (+0.5% from existing SUC)
∗ Both liberalized and administratively assigned spectrum can be shared subject to respective usage guidelines
∗ Virtual Network Operator (May 2015)∗ No cap on VNOs∗ Entry fee/LSA: 50% of Entry fee for UL (Rs. 0.5 Cr for UL(AS)
SUC and Annual License Fee is same as that of parent NSO
TRAI Spectrum Trading, Sharing and MVNO Guidelines
Spectrum Allocation for Mobile Services: A Comparison
11 May 2015LKY School of Public Policy 8
Band USA Europe Australia Brazil China India
CA P CA P CA P CA P CA P CA P
700 MHz 70 90
800 MHz 64 60 0-60 40 65 20 13
900 MHz 70 50 20 52 15
1800 MHz 15 120-150 0-20 150 150 90 60 45
1900 MHz 130 10 15-35 20 20 35 20
2100 MHz 130 30 120 120 110 30 90 20 15
2300 MHz 20 98 40
2600 MHz 194 150-190 0-50 140 175 190 20
Total 608 55 540-615
0-60 478 230 554 0 227 360 153 15
Dynamic Spectrum Access
16 June 2015Workshop on Spectrum Sharing 9
Interference in DSA
16 June 201510Workshop on Spectrum Sharing
Framework of Dynamic Spectrum Management (PCAST, 2012)
16 June 201511Workshop on Spectrum Sharing
Dynamic Spectrum Access
16 June 201512Workshop on Spectrum Sharing
Comparison of Approaches for DSA
16 June 2015Workshop on Spectrum Sharing13
DSA diffusionscenarios
User-centric Operator-centric
Definition Users or applications installed in mobiledevices make decision on accessingspectrum
Devices installed by the mobile operatorsmake decision on accessing the spectrum
Provider Device manufacturers provide DSAcapabilities to the user
Incumbent mobile operators provide DSAcapabilities to the user either through theirnetwork capabilities or through bundledapplications and services.
HypothesisIn a less competitive market, operator-centric will dominate;
While in a highly competitive market, user centric will dominate
Co-existence of Licensed and Unlicensed Networks
16 June 2015Workshop on Spectrum Sharing 14
Carrier’s Macro
Network
Wi-Fi Network
Wi-Fi/LTE-UAccess Point
Mobile Gateway
InternetDSL Connection
Mobile Core
Network
Wi-Fi Offload
LTE in Unlicensed Band
16 June 2015Workshop on Spectrum Sharing 15
Source: Extending the benefits of LTE Advanced to unlicensed spectrum, Qualcomm
5 GHz ISM Band
16 June 2015Workshop on Spectrum Sharing 16