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Telecommunication Systems
Erschienen in: Telecommunication Systems 2/2016

01.10.2016

Adoption of dynamic spectrum access technologies: a system dynamics approach

verfasst von: Arturo Basaure, Varadharajan Sridhar, Heikki Hämmäinen

Erschienen in: Telecommunication Systems | Ausgabe 2/2016

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Abstract

The introduction of dynamic spectrum access (DSA) technologies in mobile markets faces technical, economic and regulatory challenges. This paper defines industry openness and spectrum centralization as the two key factors that affect the adoption of DSA technologies. The adoption process is analyzed employing a comprehensive System Dynamics model that considers the network and substitution effects. Two possible scenarios, namely operator-centric and user-centric adoption of DSA technologies are explored in the model. The analysis indicates that operator-centric DSA technologies may be adopted in most countries where spectrum is centralized, while end-user centric DSA technologies may be adopted in countries with decentralized spectrum regime and in niche emerging services. The study highlights the role of standards-based design and concludes by citing case studies that show the practicality of this analysis and associated policy prescriptions.
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Fußnoten
1
Operator providing wireless internet access in a local basis, such as described in [2].
 
2
This framework has been adopted by the US and the EU as a three tiered framework authorization [18].
 
3
For Bass model description and application, see [42].
 
4
Critical mass is the “minimum network size that can be sustained in equilibrium” [44].
 
5
According to [54], spectrum license is an entry barrier according to Bain’s definition, but not according to Stigler’s definition. Considering that currently spectrum licenses have reselling rights and spectrum regimes are becoming more flexible, this study follows Stigler’s definition. Therefore spectrum licenses is not part of industry openness, but it is considered in a separate variable (spectrum centralization). A similar situation happens with taxi licenses, as explained by Demsetz [55].
 
6
Quasi rent is a return of a firm, which is temporal in its nature due to e.g. temporal entry barriers. Appropriable quasi rent arise from a vertical integration or a transaction-specific investment.
 
7
Under network effect, the number of adopters increases the value of a new adopter, since there are more connected devices to interact. In DSA, compatibility issues are relevant at both device and network sides.
 
8
Low market concentration increases the probability of having spectrum transactions at retail level, since it provides the end-user buying power and increased service offer. If market concentration (and spectrum concentration) is higher, there will be less transactions at retail level (less switching possibilities for end-users), but operators instead may develop a wholesale market, through cooperative or market based mechanisms, if they see it beneficial. Note that under dominant position (i.e. monopoly), the probability of having transactions decreases at both levels.
 
9
The literature has identified an inverted U-relationship between competition and investment [81, 82], in which investment is low with too high and too little competition. This relation has been widely acknowledged by more recent authors, such as [83, 84].
 
10
This exercise models user-centric devices substituting operator-centric devices. However, it may be easily extrapolated to include other scenarios, such as an operator-centric DSA process substituting an older process without DSA.
 
11
This competition coefficient affects the speed of convergence in the simulation results. This coefficient is in line with the one utilized in similar simulation exercises for telecom service substitution [86, 87] and was adjusted to converge for all the simulated scenarios.
 
12
The value of a network can be described as \(N^{2}\) by Metcalfe’s law or as \(e^{N}\) by Reed’s law.
 
13
Sources: [96, 97] and [98].
 
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Metadaten
Titel
Adoption of dynamic spectrum access technologies: a system dynamics approach
verfasst von
Arturo Basaure
Varadharajan Sridhar
Heikki Hämmäinen
Publikationsdatum
01.10.2016
Verlag
Springer US
Erschienen in
Telecommunication Systems / Ausgabe 2/2016
Print ISSN: 1018-4864
Elektronische ISSN: 1572-9451
DOI
https://doi.org/10.1007/s11235-015-0113-7

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