Unlicensed spectrum has been viewed as a way to increase competition inwireless access and promote innovation in new technologies and business models.However, several recent papers have shown that the openness of such spectrumcan also lead to it becoming over congested when used by competing wirelessservice providers (SPs). This in turn can result in the SPs making no profitand may deter them from entering the market. However, this prior work assumesthat unlicensed access is a separate service from any service offered usinglicensed spectrum. Here, we instead consider the more common case were serviceproviders bundle both licensed and unlicensed spectrum as a single service andoffer this with a single price. We analyze a model for such a market and showthat in this case SPs are able to gain higher profit than the case withoutbundling. It is also possible to get higher social welfare with bundling.Moreover, we explore the case where SPs are allowed to manage the customers'average percentage of time they receive service on unlicensed spectrum andcharacterize the social welfare gap between the profit maximizing and socialwelfare maximizing setting.
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