The impact of the TV white space unlicensed spectrum on the wireless industry competition

Abstract

In November 2008, the United States FCC voted to allow unlicensed use of the spectrum designated for TV broadcasting. After the analog-to-digital transition was completed in June 2009, space between channels was no longer needed for the successful transmission of TV signals. These unused portions of the UHF spectrum, popularly referred to as white spaces, represent a new opportunity for wireless networks, offering the potential for more unlicensed bandwidth and long transmission ranges. This thesis aims to throw light on the real potential of the newly released spectrum TV white space (TVWS) to enhance unlicensed networks features and to enable new services, by studying existing standards and previous deregulations, using historical data as a reference. This work arrives at the conclusion that due to strict laws and spectrum-sharing challenges, rural wireless service providers are the ones most likely to be using this spectrum as a Wi-Fi enhancement in their access points. This research assesses the real impact of the TVWS in wireless industry competition. Using a System Dynamics model, it analyzes the influence of TVWS new propagation conditions on the relationship between network user adoption, coverage, and service price, to model the evolution of the industry. The model has been calibrated with real data from telecom equipment market prices. Subscriber and coverage information from the main US mobile markets are used as inputs to adjust the network user adoption parameters. The results show that the new frequency will enhance the adoption of unlicensed networks but will not significantly affect subscribers of traditional licensed networks. This research also analyzes TVWS adoption scenarios and arrives at the conclusion that the scenario that would maximize TVWS social benefits would be the one in which both licensed and unlicensed operators accommodate and deploy networks in those regions that are profitable for them. This accommodation requires cooperation between unlicensed and licensed operators and could be done in several ways. For example, it could be done by means of direct negotiation, as is actually the case in the 5GHz band, where the Wireless Internet Service Providers operators directly discuss issues with interfering links. However, incumbents in the TVWS band are larger and more numerous, and therefore the author's recommendation is to have a regulatory framework in place that could help define the appropriate areas for licensed and unlicensed use. Thus regulatory bodies could preserve fairness while ensuring proper market competition. Before companies and authorities take any action, it is important for them to be aware of the factors that can modify the role/influence of the TV white space on whether subscribers choose licensed or unlicensed services. Thus, the thesis assesses how external factors, such as application/service availability or white space spectrum efficiency improvement, can substantially enhance TVWS network features, inducing subscribers to switch from licensed to unlicensed networks, and thereby affecting the licensed operators' subscribers. Finally, this thesis recommends that the authorities advocate for an accommodation of licensed and unlicensed operators based on an analysis of technology and economic modeling. However, the thesis does not discuss the legal aspects, such as the interactions of FCC authority and US antitrust laws.