Hierarchical spectrum market and the design of contracts for mobile providers

Abstract

In this paper, we propose a hierarchical market structure and contracting mechanisms that could be used by wireless/mobile service providers to trade spectrum and spectrum-derived services with each other. This market advances beyond the current contracting mechanisms between service providers that, due to availability of only long-term contract choices, do not lead to efficient utilization of spectrum resources and service innovation for the customers. We describe the spectrum market structure in terms of the role of the providers and the different spectrum contract types that could be traded in the marketplace. Finally, the role and function of present day mobile virtual networks operators (MVNO) and the mobile network operators (MNO) are discussed from the context of the proposed market structure.