Fostering wireless spectrum sharing via subsidization

Allowing an improved and ubiquitous sharing of the precious radio spectrum among providers has been identified as a key goal by many governmental agencies. In this paper, we propose a novel approach to foster more sharing of the radio spectrum via the use of regulatory power. We develop a spectrum subsidization scheme in which providers are incentivized by cheaper spectrum allocation fees from the regulators in return for “proof-of-sharing”. The providers are offered discounted spectrum bands, potentially at different locations, but will be asked to provide coverage to users that are not subscribed to them so as to maintain their subsidy incentives from the government. We introduce a game-theoretic framework to analyze the advantages and drawbacks of such a subsidy scheme and explore potential regulatory guidelines.