Competitive Resource Allocation in HetNets: the Impact of Small-cell Spectrum Constraints and Investment Costs

摘要

Heterogeneous wireless networks with small-cell deployments in licensed andunlicensed spectrum bands are a promising approach for expanding wirelessconnectivity and service. As a result, wireless service providers (SPs) areadding small-cells to augment their existing macro-cell deployments. This addedflexibility complicates network management, in particular, service pricing andspectrum allocations across macro- and small-cells. Further, these decisionsdepend on the degree of competition among SPs. Restrictions on shared spectrumaccess imposed by regulators, such as low power constraints that lead tosmall-cell deployments, along with the investment cost needed to add smallcells to an existing network, also impact strategic decisions and marketefficiency. If the revenue generated by small-cells does not cover theinvestment cost, then there will be no deployment even if it increases socialwelfare. We study the implications of such spectrum constraints and investmentcosts on resource allocation and pricing decisions by competitive SPs, alongwith the associated social welfare. Our results show that while the optimalresource allocation taking constraints and investment into account can beuniquely determined, adding those features with strategic SPs can have asubstantial effect on the equilibrium market structure.