Economics of Femtocells

Shetty, Nikhil; Parekh, Shyam; Walrand, Jean

doi:10.1109/glocom.2009.5426129

Cited by 101 publications

(101 citation statements)

References 10 publications

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“…An interesting line of academic work has considered various pricing and game theoretic approaches [114], [115]. This theme is explored in three articles in this special issue [55], [60], [68], that reveal interesting interplay between the economic aspects of pricing and the physical layer aspects of wireless network interactions.…”

Section: ) Operator Business Casementioning

confidence: 99%

Femtocells: Past, Present, and Future

Andrews

Claußen²,

Döhler

et al. 2012

IEEE J. Select. Areas Commun.

1,073

703

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Abstract-Femtocells, despite their name, pose a potentially large disruption to the carefully planned cellular networks that now connect a majority of the planet's citizens to the Internet and with each other. Femtocells -which by the end of 2010 already outnumbered traditional base stations and at the time of publication are being deployed at a rate of about five million a year -both enhance and interfere with this network in ways that are not yet well understood. Will femtocells be crucial for offloading data and video from the creaking traditional network? Or will femtocells prove more trouble than they are worth, undermining decades of careful base station deployment with unpredictable interference while delivering only limited gains? Or possibly neither: are femtocells just a "flash in the pan"; an exciting but short-lived stage of network evolution that will be rendered obsolete by improved WiFi offloading, new backhaul regulations and/or pricing, or other unforeseen technological developments? This tutorial article overviews the history of femtocells, demystifies their key aspects, and provides a preview of the next few years, which the authors believe will see a rapid acceleration towards small cell technology. In the course of the article, we also position and introduce the articles that headline this special issue.

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Section: ) Operator Business Casementioning

confidence: 99%

Femtocells: Past, Present, and Future

Andrews

Claußen²,

Döhler

et al. 2012

IEEE J. Select. Areas Commun.

1,073

703

View full text Add to dashboard Cite

show abstract

“…For separate service the same equality will hold except only for small-cells and unlicensed. With α-fair utilities, the rate per user (3). Using this in the above equations yields the following lemma that gives a useful comparison of the equilibrium rates of each service.…”

Section: User Association With a Single Spmentioning

confidence: 99%

“…Related work on pricing and bandwidth allocation in heterogeneous wireless networks is presented in [3]- [9]. In [3]- [5] small-cell service is an enhancement to macro-cell service, and in [6]- [9] small-and macro-cells provide separate services (as we assume here).…”

Section: Introductionmentioning

confidence: 99%

The impact of unlicensed access on small-cell resource allocation

Chen

Berry

Honig

et al. 2016

IEEE INFOCOM 2016 - The 35th Annual IEEE International Conference on Computer Communications

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Abstract-Small cells deployed in licensed spectrum and unlicensed access via WiFi provide different ways of expanding wireless services to low mobility users. That reduces the demand for conventional macro-cellular networks, which are better suited for wide-area mobile coverage. The mix of these technologies seen in practice depends in part on the decisions made by wireless service providers that seek to maximize revenue, and allocations of licensed and unlicensed spectrum by regulators. To understand these interactions we present a model in which a service provider allocates available licensed spectrum across two separate bands, one for macro-and one for small-cells, in order to serve two types of users: mobile and fixed. We assume a service model in which the providers can charge a (different) price per unit rate for each type of service (macro-or small-cell); unlicensed access is free. With this setup we study how the addition of unlicensed spectrum affects prices and the optimal allocation of bandwidth across macro-/small-cells. We also characterize the optimal fraction of unlicensed spectrum when new bandwidth becomes available.

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“…Only few papers have studied the economic issues of femtocell service ( [16], [17], [29]- [31]). Claussen et al [29] explored the financial impact of femtocells on a macrocell network, with a focus on the network deployment costs.…”

Section: Related Workmentioning

confidence: 99%

“…There are two types of sharing schemes. The first scheme is "separate carriers", where the femtocells and macrocells occupy non-overlapping spectrum bands (e.g., [10], [16], [19]). The second scheme is "shared carriers" (or "partially shared carriers"), where macrocells and femtocells operate on (partially) overlapping bands (e.g., [9], [20], [28]).…”

Section: Introductionmentioning

confidence: 99%

Economics of Femtocell Service Provision

Duan

Huang

Shou

2013

IEEE Trans. on Mobile Comput.

112

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Abstract-Femtocells can effectively resolve the poor connectivity issue of indoor cellular users. This paper investigates the economic incentive for a cellular operator to add femtocell service on top of its existing macrocell service. We model the interactions between a cellular operator and users as a Stackelberg game: the operator first determines spectrum allocations and pricings of femtocell and macrocell services, and then heterogeneous users choose between the two services and the amount of resource to request. In the ideal case where the femtocell service has the same full spatial coverage as the macrocell service, we show that the operator will choose to provide femtocell service only, as this leads to a better user Quality of Service and a higher operator profit. However, if we impose the constraint that no users' payoffs decrease after introducing the femtocell service, then the operator will always continue providing the macrocell service (with or without the femtocell service). Furthermore, we study the impact of operational cost, limited coverage, and spatial reuse on femtocell service provision. As the operational cost increases, fewer users are served by femtocell service and the operator's profit decreases. When the femtocell service has limited spatial coverage, the operator always provides the macrocell service beside the femtocell service. However, when the coverage is high or the total resource is low, the operator will set the prices such that all users who can access femtocell will choose to use the femtocell service only. Finally, spatial reuse of spectrum will increase the efficiency of femtocell services, and gives the operator more incentives to allocate spectrum to femtocells.

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Economics of Femtocells

Cited by 101 publications

References 10 publications

Femtocells: Past, Present, and Future

Femtocells: Past, Present, and Future

The impact of unlicensed access on small-cell resource allocation

Economics of Femtocell Service Provision

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