Frequency spectrum allocation in an agent-based model of real-time spectrum secondary market

Abstract

A significant increase in wireless communication has been observed in the last decade. Traditional fixed spectrum allocation presents limitations to better spectrum utilization. Real-time secondary spectrum market seems to be appropriate approach to eliminating the problem of spectrum scarcity. Economic aspects of the new approach are still only partially investigated. Besides the conventional wholesale market with wholesale price paid for frequency spectrum, we introduce new system of allocation based on tax paid by operators for unused frequency spectrum. We aim to build an agent-based model of the real-time secondary spectrum market to compare two systems of spectrum allocation. We performed parameter sensitivity analysis and robustness against initial conditions. The results of the simulation show different impact on licence owner's revenue as well as operator's revenue.