Techno-Economic Models of Secondary Spectrum Use

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Dynamic Spectrum Access (DSA) technologies have been proposed and researched for 15 years, yet only some relatively experimental systems are in operation today. This research explores some essential but unexplored techno-economic aspects of DSA that are crucial if these systems are to come to commercial reality. One major thrust is an exploration of how substitutable different frequency bands that these systems might use are with each other. Another major thrust is how a firm that might be considering the use of DSA technologies can manage the technical and financial risk inherent in them. To accomplish this, a fungibility score based on mathematical models and agent-based simulations are developed to evaluate the substitutability among spectrum bands to assist firms as well as policymakers in assessing candidate bands for use in a DSA system. For risk management, the project employs real options analysis to develop a set of risk measures and mitigation strategies for technical and financial risk to assist secondary users in DSA systems. This work will help policymakers develop better guidelines for the industry. It will also help firms seeking to use DSA technologies reason more clearly about which technical and financial choices are best and why, providing guidelines for growth and job creation. The expected outcomes of this project will include a set of tools that will enable entrants into a secondary spectrum market to make decisions as well as for policy makers to evaluate the factors that may influence their regulatory guidelines in order to promote viable DSA markets.