Abstract

Efficient spectrum management has always been an important issue due to the scarcity of satellite spectral resource, especially with the ever-increasing broadband demand. This paper proposes a market-driven technique to improve spectrum efficiency. In practice, spectrum resources are typically allocated in bulk to terrestrial agents which in turn will resell the bandwidth to end users of satellite communications. This paper explores the important role of terrestrial agents which serve as spectrum sales agents in satellite communications systems. The proposed approach aims to provide an incentive scheme for the agents to participate in the spectrum optimization process so as to result in maximizing the benefit of the agents as well as the satellite systems. We propose a dynamically optimal cooperation scheme between terrestrial agents and satellite systems, which is based on a stochastic process and optimal contract principle. By taking into consideration the satellite system's marginal cost related to transmission capacity in the given bandwidth, terrestrial agent's effort and the impact of market volatility, we designed an optimal incentive model which allows the satellite systems to determine a threshold value for paying sales commission to terrestrial agents or triggering contract termination if spectrum utilization is inefficient. Numerical results are presented to evaluate the performances of satellite systems’ profits in changing spectrum market and agency cost undertaken by satellite systems.

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