Spectrum Aggregation Technology: Benefit- Cost Analysis and its Impact on Spectrum Value

16 Pages Posted: 16 Jan 2012

See all articles by Mohammed Naif Alotaibi

Mohammed Naif Alotaibi

affiliation not provided to SSRN

Marvin A. Sirbu

Carnegie Mellon University - Engineering and Public Policy (EPP); Carnegie Mellon University - David A. Tepper School of Business

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.

Suggested Citation

Alotaibi, Mohammed Naif and Sirbu, Marvin A., Spectrum Aggregation Technology: Benefit- Cost Analysis and its Impact on Spectrum Value (September 24, 2011). TPRC 2011, Available at SSRN: https://ssrn.com/abstract=1985738

Mohammed Naif Alotaibi

affiliation not provided to SSRN ( email )

Marvin A. Sirbu (Contact Author)

Carnegie Mellon University - Engineering and Public Policy (EPP) ( email )

Pittsburgh, PA 15213
United States

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

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