Abstract.Radio spectrum for wireless communications is a finite resource whose allocation to different technologies and application areas is governed by regulatory bodies. Radio spectrum has enormous economic value, which attracts many potential wireless operators. One of the functions of the regulators is to assign the available radio spectrum to operators. Spectrum auctioning became a favorable tool for selecting operators and assigning bandwidth to bidders. Many auctioning methods have been proposed in order to achieve efficient and fair allocation. It is common to decide before the auction begins on the number of operators that will be permitted to operate in each geographic area.

We develop a model of the net revenues of an operator as a function of the number of operators that are permitted to operate in a given area. It is demonstrated through numerical examples that a priori decisions can lead to significant reductions in the value of the allocated spectrum. An improved auctioning method is proposed which captures the impact of the number of winning bidders on the overall revenues collected by the auctioneer and provides the regulators with data on the value of different allocations.

Received: 15 February, 2003

AMS Subject Classification: 90B12, 94A05,

Key Words and Phrases: radio spectrum, models of net revenues of an operator, numerical examples

Source: International Journal of Pure and Applied Mathematics
ISSN: 1311-8080
Year: 2003
Volume: 7
Issue: 2