skip to main content


Title: The Impact of Bundling Licensed and Unlicensed Wireless Service
Unlicensed spectrum has been viewed as a way to increase competition in wireless access and promote innovation in new technologies and business models. However, several recent papers have shown that the openness of such spectrum can also lead to it becoming over congested when used by competing wireless service providers (SPs). This in turn can result in the SPs making no profit and may deter them from entering the market. However, this prior work assumes that unlicensed access is a separate service from any service offered using licensed spectrum. Here, we instead consider the more common case were service providers bundle both licensed and unlicensed spectrum as a single service and offer this with a single price. We analyze a model for such a market and show that in this case SPs are able to gain higher profit than the case without bundling. It is also possible to get higher social welfare with bundling. Moreover, we explore the case where SPs are allowed to manage the customers' average percentage of time they receive service on unlicensed spectrum and characterize the social welfare gap between the profit maximizing and social welfare maximizing setting.  more » « less
Award ID(s):
1701921
NSF-PAR ID:
10090187
Author(s) / Creator(s):
;
Date Published:
Journal Name:
IEEE INFOCOM 2018 - IEEE Conference on Computer Communications
Page Range / eLocation ID:
1394 to 1402
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
More Like this
  1. Adding new unlicensed wireless spectrum is a promising approach to accommodate increasing traffic demand. However, unlicensed spectrum may have a high risk of becoming congested, and service providers (SPs) may have difficulty to differentiate their wireless services when offering them on the same unlicensed spectrum. When SPs offer identical services, the resulting competition can lead to zero profits. In this work, we consider the case where an SP bundles its wireless service with a content service. We show that this can differentiate the SPs’ services and lead to positive SP profits. In particular, we study the characteristics of the content services that an SP should bundle with its wireless service, and analyze the impact of bundling on consumer surplus. 
    more » « less
  2. Security is a critical concern in shared spectrum environments. In additional to degrading service, attacks can influence the market interactions between competing service providers (SPs). This paper investigates these interactions by considering two SPs engaged in Cournot competition while utilizing both proprietary and shared spectrum, with shared spectrum available in either licensed or open-access forms. Additionally, we assume the presence of an attacker whose objective is to deny service to one or more of the shared bands for a fraction of the time, consequently reducing the overall total revenue. We analyze the optimal forms of attacks under different attacker objectives and their repercussions on the resulting market equilibrium. Utilizing these analyses, we compare the impacts of various spectrum sharing approaches (licensed and open access) and differing amounts of spectrum holdings of the two providers. 
    more » « less
  3. LTE-U is an extension of the Long Term Evolution (LTE) standard for operation in unlicensed spectrum. LTE-U differs from WiFi, the predominant technology used in unlicensed spectrum in that it utilizes a duty cycle mode for accessing the spectrum and allows for a more seamless integration with LTE deployments in licensed spectrum. There have been a number of technical studies on the co-existence of LTE-U and WiFi in unlicensed spectrum In this paper, we instead investigate the impact of such a technology from an economic perspective. We consider a model in which an incumbent service provider (SP) deploys a duty cycle-based technology like LTE-U in an unlicensed band along with operating in a licensed band and competes with one or more entrants that only operate in the unlicensed band using a different technology like WiFi. We characterize the impact of a technology like LTE-U on the market outcome and show that the welfare impacts of this technology are subtle, depending in part on the amount of unlicensed spectrum and number of entrants. We also investigate the impact of the duty cycle and the portion of unlicensed spectrum used by the technology. 
    more » « less
  4. null (Ed.)
    The Citizens Broadband Radio Service (CBRS) recently adopted in the U.S. enables commercial users to share spectrum with incumbent federal users. This sharing can be assisted by Environmental Sensing Capability operators (ESCs), that monitor the spectrum occupancy to determine when the use of the spectrum will not harm incumbents. An important aspect of the CBRS is that it enables two tiers of spectrum access by commercial users. The higher tier corresponds to a spectrum access (SA) firm that purchases a priority access license (PAL) in a competitive auction. The PAL holder obtains dedicated licensed access to a portion of the spectrum when the incumbent is not present. The lower tier, referred to as generalized Authorized Access (GAA), does not request a PAL and is similar to unlicensed access, in which multiple firms share a portion of the spectrum. Entry and investment in such a market introduces a number of new dimensions. Should an entrant bid for a PAL? How does the availability of a PAL impact their investment decisions? We develop a game-theoretic model to study these issues in which entrant SAs may bid in a PAL auction and decide on their investment levels and then compete downstream for customers. 
    more » « less
  5. We analyze the prioritized sharing between an added value Mobile Virtual Network Operator (MVNO) and multiple Mobile Network Operators (MNOs). An added value MVNO is one which earns added revenue from wireless users in addition to the revenue it directly collects for providing them wireless service. To offer service, an MVNO needs to contract with one or more MNOs to utilize their networks. Agreeing on such a contract requires the MNOs to consider the impact on their revenue from allowing the MVNO to enter the market as well as the possibility that other MNOs will cooperate. To further protect their customers, the MNOs may prioritize their direct customers over those of the MVNO. We establish a multi-stage game to analyze the equilibrium decisions of the MVNO, MNOs, and users in such a setting. In particular, we characterize the condition under which the MVNO can collaborate with the MNOs. The results show that the MVNO tends to cooperate with the MNOs when the band resources are limited and the added value is significant. When there is significant difference in band resources among the MNOs, the MVNO first considers cooperating with the MNO with a smaller band. We also consider the case when the users also have access to unlicensed spectrum. 
    more » « less