Portfolio optimization in secondary spectrum markets

—In this paper, we address the spectrum portfolio optimization (SPO) question in the context of secondary spectrum markets, where bandwidth (spectrum access rights) can be bought in the form of primary and secondary contracts. While a primary contract on a channel provides guaranteed access to the channel bandwidth (possibly at a higher per-unit price), the bandwidth available to use from a secondary contract (possibly at a discounted price) is typically uncertain/stochastic. The key problem for the buyer (service provider) in this market is to determine the amount of primary and secondary contract units needed to satisfy uncertain user demand. We initially consider a single-region problem in which the spectrum contracts are valid only in the single-region in which the buyer wishes to provide service. We formulate the problem as one of minimizing the cost of the spectrum portfolio subject to constraints on bandwidth shortage. Two different forms of bandwidth shortage constraints are ...

• Type: Journal
• Year: 2011
• Where: WIOPT
• Authors: Praveen Kumar Muthuswamy, Koushik Kar, Aparna Gupta, Saswati Sarkar, Gaurav S. Kasbekar
• Keywords: Computer Networks, Convex Optimization Techniques, Demand Satisfaction, Spectrum Contracts, WIOPT 2011