The business model impact of flexible spectrum management and cognitive networks

Abstract

PurposeThis paper aims to give a short overview of European Union policy trends towards more flexible forms of spectrum management.Design/methodology/approachThe paper presents a business modelling analysis, scenario construction, policy analysis and roadmapping. It argues that both flexible spectrum management and the concept of reconfigurability do not eliminate the need for a number of centralised controlling entities, and even introduce a number of new ones, performing regulatory, commercial and technical functions of a diverse nature. One of the most prominent control entities, the Cognitive Pilot Channel (CPC), is presented, and three different configurations of the CPC are outlined. Subsequently, the potential impact of different CPC configurations on business models for wireless services making use of such a channel is explored.FindingsThe paper concludes that a hybrid model combining a meta‐level CPC with operator‐deployed channels might provide the best mix of technical and strategic control for operators, and value for users.Research limitations/implicationsThe study undertaken here is exploratory in nature since, for example, no exact estimations of cost and revenue, or harmonisation feasibility and roadmaps can be made at this time.Originality/valueThe CPC is a recent and potentially crucial concept which is not yet standardised or implemented and for which no business modelling analysis has been performed yet.