Spectrum Aggregation Technology: Benefit- Cost Analysis and its Impact on Spectrum Value
16 Pages Posted: 16 Jan 2012
Date Written: September 24, 2011
Abstract
The demand for more spectrum is increasing, especially larger contiguous blocks for higher peak bit-rate applications. Spectrum aggregation (SA) technology allows multiple contiguous or non-contiguous blocks of spectrum to be treated as if they were one large contiguous block. In this paper, we investigate the economic impacts of SA technology on wireless broadband network deployment including impacts on capacity, coverage and equipment. We discuss the possible benefits of spectrum aggregations including obviating spectrum refarming, utilizing unused spectrum fragments for broadband and enabling spectrum sharing. We then consider possible effects of SA on spectrum trading and auctions.
Finally, we perform basic analysis to measure the impact this technology might have on spectrum value. By estimating the costs and benefits of spectrum aggregation technology, qualitatively and quantitatively when possible, our analysis provides fundamental information for regulators concerned with spectrum allocation, refarming and primary and secondary services markets. As our analysis shows, spectrum aggregation technology benefits seem to outweigh its costs for broadband wireless providers and regulators.
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