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Auction driven dynamic spectrum allocation: optimal bidding, pricing and service priorities for multi-rate, multi-class CDMA

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3 Author(s)
Rodriguez, V. ; CSSR, Surrey Univ., Guildford ; Moessner, K. ; Tafazolli, R.

Dynamic spectrum allocation (DSA) seeks to exploit the variations in the loads of various radio-access networks to allocate the spectrum efficiently. Here, a spectrum manager implements DSA by periodically auctioning short-term spectrum licenses. We solve analytically the problem of the operator of a CDMA cell populated by delay-tolerant terminals operating at various data rates, on the downlink, and representing users with dissimilar "willingness to pay" (WtP). WtP is the most a user would pay for a correctly transferred information bit. The operator finds a revenue-maximising internal pricing and a service priority policy, along with a bid for spectrum. Our clear and specific analytical results apply to a wide variety of physical layer configurations. The optimal operating point can be easily obtained from the frame-success rate function. At the optimum, (with a convenient time scale) a terminal's contribution to revenues is the product of its WtP by its data rate; and the product of its WtP by its channel gain determines its service priority ("revenue per Hertz"). Assuming a second-price auction, the operator's optimal bid for a certain spectrum band equals the sum of the individual revenue contributions of the additional terminals that could be served, if the band is won

Published in:

Personal, Indoor and Mobile Radio Communications, 2005. PIMRC 2005. IEEE 16th International Symposium on  (Volume:3 )

Date of Conference:

11-14 Sept. 2005