A comprehensive secondary market model for virtualized wireless connectivity

Abstract

Secondary markets are essential if we are to re-assign valuable resources such as radio spectrum to users and services who value them most. Despite the potential that markets have to perform this task, it is still difficult to find real-world examples of successful secondary markets for spectrum. In this work, we explore a broader context where markets would be deployed to shed light on the different components that may affect their viability.Transactions that involve electromagnetic spectrum are generally extremely difficult to achieve due to the complexity of spectrum when treated as a tradeable commodity. To ease these difficulties, we start with the proposition the that many applications require wireless connectivity rather than simply spectrum. We proceed to consider a system where transactions for wireless connectivity are handled by a specialized intermediary that we refer to as Virtual Network Builder (VNB). The model we present accounts for technical definitions of spectrum as a commodity as an effort to bring diversity, and hence thickness, to the market. At the same time, we consider a more nuanced definition of market participants (Resource Providers (RPs) and Service Providers (SPs)), which allows us to examine their incentives to transact in the market and the consequences of their strategies. As a result, we are able to evaluate the performance of a market for wireless connectivity from multiple angles including the efficiency in resource assignment, profitability for market participants and overall conditions to market viability.