Enabling the Femtocells: A Cooperation Framework for Mobile and Fixed-Line Operators

Femtocells´ ability to improve the in-building coverage and capacity in a cost-efficient way has drawn significant attention from mobile operators. However, a mobile operator may lack a fixed-line network infrastructure, which is indispensable for enabling femtocell service. In this paper, we propose a hybrid cooperation framework where a mobile operator can collaborate with a fixed-line operator (as a virtual integrated operator) to provide femtocell service to indoor users. The framework consists of sequential game and Nash bargaining. The sequential game models the interactions of the operator and users. Specifically, the operator announces the price for wireless services first and then the users decide their spectrum demands in response to the given price. Then the two operators divide the cooperation benefit according to the Nash bargaining model, which makes the profit sharing fair and cooperation framework amenable to operators. We theoretically derive the unique closed-form equilibrium for the framework as well as the conditions that promote the cooperation. The simulation results verify that the cooperation framework can make more revenue for the operators and the spectrum efficiency is significantly improved.