The profitability analysis of the multi-band spectrum broker

In this paper the incentives for regulators or 3^rd party companies which would like to run the spectrum broker have been presented. The concept is based on the distinction between the legacy bands (dedicated for the mobile operators) and the capacity bands. The broker sells the temporary licenses to the operators interested in the capacity extension of their networks. Due to the need of the better and flexible spectrum utilization the additional spectrum resources from the capacity bands are licensed for short periods (hours or days instead of years). The broker controls the licensing process and minimizes the interferences between operators. In this paper we present the possible spectrum objects (products) which can be leased by the broker. We discuss the potential incomes based on the spectrum availability, proposed spectrum objects, their minimum prices and base stations´ deployment. We also propose the broker´s cost model. Finally, we discuss the broker´s profitability and present the guidelines for regulators. In our analysis we discuss the possible spectrum objects which may come from TV white spaces, L band (1452-1492 MHz), GSM 900/1800 MHz band (after the spectrum refarming), NTIA military band (1755-1850 MHz) and in 2.5 GHz band. Our analysis was conducted for LTE (Long Term Evolution) and LTE-A (LTE-Advanced) systems.