Asset liability management for providers in spectrum markets

Abstract

Service provision with novel features can be made possible in a more dynamic spectrum marketplace. In this marketplace, a service provider will need to create an appropriate spectrum asset portfolio to support the services offered to its customers. Such an asset portfolio should satisfactorily meet all demand characteristics implied by the novel service features. In this paper, we address this question of optimal asset portfolio construction in an asset-liability management framework from the perspective of a mobile service provider. We find that the provider utilizes a mix of primary and secondary contracts, and uses the costlier spot contracts to fulfil the peak-time demand subject to the budget constraints. The framework allows evaluating a variety of service portfolios, with traditional and novel service mix, for their best matched asset portfolios. Niche premium service providers must also use all three contract types.