Unleashing the potential of QoS-aware pricing within licensed shared access framework
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Unleashing the potential of QoS‑aware pricing within licensed shared access framework Vaggelis G. Douros* and Petri Mähönen *Correspondence: vaggelis.douros@inets. rwth‑aachen.de Institute for Networked Systems, RWTH Aachen University, Kackertstrasse 9, 52072 Aachen, Germany Part of this work has been presented at CROWNCOM 2019 [1]
Abstract We present a techno-economic analysis of a cellular market that operates within the licensed shared access (LSA) framework, consisting of a mobile network operator (MNO) that leases spectrum to a number of programme making and special events (PMSE) users. The MNO offers two quality-of-service (QoS) classes (high and low), differentiating the price based on the QoS class. The key question that we address is whether and to which extent the MNO has incentive to adopt this form of QoS-aware pricing. After getting some promising insights from the analysis of two case studies, we propose a general methodology. The first step is to model the parameters that are controlled by each PMSE user: (i) the way to choose between the two QoS classes and (ii) the available budget per QoS class. The second step is to compute the maximum revenue of the MNO. Our analysis reveals that the MNO can always tune the prices so as to maximise its revenue for the scenario where all users belong to the high QoS class. This is a consistent result throughout our study that holds for any considered set of user-controlled parameters and of technical parameters. We conclude that the adoption of QoS-aware pricing in an LSA market generates a tussle between the MNO and the regulator. The MNO has incentive to support fewer users but with high QoS and charge them more, which is not aligned with the regulator’s goal for social welfare maximisation. Keywords: Techno-economics, Mobile network operators, Programme making and special events
1 Introduction and related work Licensed shared access (LSA) [2] has been adopted in Europe as a promising paradigm to dynamically share licensed spectrum between different networks and technologies. LSA proposes a two-tier approach where the initial target use case considered mobile network operators (MNOs) leasing spectrum in the 2.3–2.4 GHz band from incumbent technologies like programme making and special events (PMSE) [3]. However, recent initiatives from industry and spectrum regulators have proposed a symmetric use case, where PMSE users could lease spectrum from MNOs, targeting reliable short-term use of spectrum for concerts, conferences, etc. [4]. Though the adoption of LSA brings significant benefits from a technical perspective, a number of business challenges arise for the key stakeholders of the market (i.e., regulator, incumbent spectrum user, and LSA licensee). These include the MNO’s costs of © The Author(s) 2020. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit
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