Best Effort versus Spectrum Markets: Wideband and Wi-Fi versus 3G MVNOs?

Abstract

This paper asks is whether (i) 3rd generation wireless services, as embodied in the planned and soon to be offered services emerging first in Asia and Europe, or (ii) the unlicensed wireless services such as 802.11 or wi-fi but also including more advanced wideband and ultrawideband (UWB) services which are being experimented with primarily in North America, offer more compelling visions for advanced wireless services. we conclude that secondary spectrum markets are important for the viability of the 3G industry, and not only for reasons of efficiency. One large difference between 2G and 3G networks, observed in our models, was that voice services alone would not generate sufficient revenues for a 3G system. License holders which up to now have concentrated on selling a single product, will need to develop a much larger range of advanced applications, which will have to be marketed and packaged in different ways for different market segments.