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19.5.2012 : 2:56

Highlights: Scenarios and Business Models

At this stage in the QoSMOS project, the scenarios and system requirements have been defined. An initial ecosystem and metrics for spectrum micro-trading has been defined and the basic business cases defined.

QoSMOS Scenarios

The QoSMOS scenarios describe the context in which the QoSMOS system is believed to form a feasible solution. The project has defined six distinct scenarios which are now used as the basis for the technical work. The scenarios provide a good mix between long and short range as well as cellular and non-cellular architecture.

Dynamic backhaul

  • Wireless backhaul connections between access networks and remote terminals and a core network where the nodes could be several point-to-point links (relays).

Cellular extension in whitespace

  • Mobile networks (e.g. LTE) can utilise whitespace (WS) spectrum in addition to their own licensed spectrum. This additional spectrum allows for mobile operators to gain additional bandwidths to benefit the user, or additional coverage using low frequency WS.

Rural broadband

  • Wireless Internet connectivity to homes in rural locations can utilize WS on low frequencies. The homes may be 1-10km from the base station.

Cognitive ad hoc network

  • Ad hoc networks may include one or more nodes with access to the Internet via other networks, but it may possibly be completely stand alone. Ad hoc networks could be used, for example, for creating communications networks for first responders to emergency situations.

Direct terminal-to-terminal in cellular

  • In an infrastructure-based network, the mobile terminals can communicate directly between each other, with no data traffic going through the base station. The system management is still within the cellular network rather than in the terminals themselves. This can save the resource of the base station and can reduce power consumption in mobile terminals.

Cognitive femtocell

  • A user situation with low mobility, but high demands on throughput and QoS. Femtocells are always connected to an infrastructure. Femtocell are typically used as domestic wireless broadband solutions and public hot spots in e.g. commuter areas, cafés and similar. Both indoor and outdoor deployment is possible.

The scenarios and rationalization behind them are all comprehensively described in the QoSMOS deliverable D1.2 from December 2010. A subset of these scenarios will be used in the following studies on business models, technical analysis and proof-of-concepts.

 

QoSMOS System Requirements

The requirements for the QoSMOS system have been defined according to four major goals:

  • Competitiveness
  • Regulatory compliance
  • Technical performance
  • Flexibility and scalability

Frequency flexibility

The QoSMOS approach to requirements also contains the concept of frequency flexibility. Different parts of the QoSMOS system can be placed on a scale from no frequency dependence to high frequency dependence:

 

In order to meet the overall goals, four top-level requirements have been defined:

Requirements for business, user and service

  • The QoSMOS system should be competitive to other technologies and show a proven benefit in relevant markets and scenarios. (Competitiveness of the QoSMOS system)

Requirements for system operation

  • The QoSMOS system shall be flexible and adaptable to differences in regulations given for the regions and markets in which it is intended to be deployed. (Regulatory compliance)

Requirements for performance

  • The QoSMOS system’s technical performance should be good enough to meet users’ expectations of the service delivered. (Technical performance)

Requirements for architecture and complexity

  • The QoSMOS architecture shall ensure complying with other external systems and ensure flexibility and scalability. (Architecture and complexity)

Each of these four requirements is further broken down into more specific requirements which are detailed in the QoSMOS Deliverable D1.4 from March 2011.

 

Spectrum Micro-Trading

Roles in the Spectrum Trading Ecosystem

Spectrum trading is a tool to increase overall spectrum utilization and to open up opportunities for businesses to get access to desired spectrum. Regulatory rules for spectrum trading have been implemented in some countries for some spectrum bands, for instance in the UK and US. However, the current spectrum trading regimes usually require long times to execute a trade, hence limiting the flexibility over short time scales. Spectrum micro-trading is a concept to enable trading of spectrum at the micro scale in three dimensions; on the micro-spatial, micro-temporal and micro-frequency scale.

Ecosystem for Spectrum Trading

The QoSMOS project has identified the ecosystem and roles to be involved in a spectrum micro-trading market:

  • A Spectrum Trader can be a seller, buyer, leaser or lessee. The trader can even take on more of these roles and also speculate in the market.
  • A Spectrum Broker in the spectrum trading market is analogous to a broker in the stock exchange market. The spectrum broker can be defined as a party which arranges transactions between a buyer and a seller or leaser and lessee, and gets a commission when a deal is executed. A spectrum broker might have several additional properties such as providing market information about prices, spectrum details and market conditions.
  • A Spectrum Database contains information about the radio spectrum to be traded, e.g. who owns the licences, who uses the spectrum, spectrum occupancy, spectrum availability, noise and interference conditions in a spectrum band, and so on. Different actors could operate a spectrum database: an independent third party, the regulator or the spectrum licence owner.
  • A Wireless Sensor Network (WSN) can be used to monitor the radio spectrum to be traded for a given area. The WSN can provide much of the same information as a spectrum database. In addition it can provide more detailed information about the real-time spectrum status (spatial, temporal and frequency) such as noise, interference and detailed location information of radio emitters.
  • The Spectrum Regulator is interested in having a high utilization of the spectral resources and that people get high quality services. The main task of a spectrum regulator in a spectrum market will be to set out the rules, policies and processes that must be adhered to in a spectrum market.

The ecosystem for spectrum micro-trading is discussed in more detail in the QoSMOS whitepaper on “Business opportunities and Scenarios for Cognitive Radio”.

Metrics for Spectrum Trading

The QoSMOS project proposes that four main high level metrics should be used for assessing the performance of micro-trading:

  • Market Viability: can micro-trading be a profitable business?
  • Channel Quality: will QoS and Quality of Experience (QoE) (for example, channel throughput, latency and so on) be improved by micro-trading?
  • Spectrum Utilization: will micro-trading make better use of available spectrum?
  • Social welfare: will the general well-being of society be improved by using micro-trading?

The metrics might be specific to one or more of the roles and actors defined in the ecosystem; for example, social welfare could be specific to the regulator. These metrics are further divided into a set of sub-metrics used to measure performance at the low level.

The final deliverable on "Spectrum Micro Trading Analysis" (D1.5) will be available after June 2012.

Business and Deployment Models Analysis and Evaluation

The most interesting business opportunities for cognitive radio are

  • Easier access to new markets. By using cognitive radio and use spectrum opportunistically, the start-up time and initial costs will be significantly reduced.
  • Opportunities for new entrants. Many companies offer services that can potentially be enhanced or extended by combining them with a wireless service, but has been prevented from doing so due to the high investments required to get access to spectrum.
  • Capacity enhancements. An existing wireless operator having an infrastructure in an area can use opportunistic spectrum to increase the capacity of its network.
  • Spectrum sharing. Cognitive radio can be used as an enabling technology for spectrum sharing between operators. Cognitive radios have the ability to get information about how the spectrum is used in their environments and adapt their transmissions to minimize the disturbance to other radios.
  • Spectrum trading. Spectrum trading is a business opportunity for wireless operators to get revenues from their spectrum at times when they do not need all of it themselves. Spectrum trading is also an opportunity for new actors to enter the wireless communication ecosystem, such as spectrum brokers and pure spectrum owners.
  • Cost and performance gains in own network. Wireless operators can improve their own spectrum efficiency by using cognitive radio technology. Cognitive radio systems are able to adapt their operation according to given criteria and can, for example, be used for optimizing transmissions, automating operational tasks and optimizing network tuning.
  • New services. Cognitive radios’ ability to know their environment and know their users’ needs can be used to offer environment- and context-aware type of services. Such services can be seen as an extension of location-based services, which are already offered as a service by some operators.

Cognitive radio is expected to offer business opportunities for different players, including wireless operators, fixed operators and new entrants.

The business case study of QoSMOS has used the following criteria for targeting the most interesting and promising scenarios for business case studies:

  • Market Potential
  • Best Technological Solution
  • Technical Feasibility
  • Economic Feasibility
  • Regulatory Feasibility
  • Ecosystem Feasibility
  • Benefits for the society

Business case for the “Cognitive femtocell” scenario

A possible business case for this scenario assumes that a fixed network operator will use cognitive femtocells to extend its operation to be able to offer a mobile broadband service to its customers. The operator is assumed to be one of the leading fixed network operators in the studied area. It has a large market share in fixed broadband based on DSL (Digital Subscriber Line, broadband over copper lines), HFC (Hybrid Fibre Coax, broadband over cable TV networks) or FTTH (Fibre to the home) solutions. It has an extensive cable, transport and switching infrastructure and an existing organisation for sales, marketing, technology and operation.

The operator will use TVWS (470-790 MHz) in a cognitive way to extend its business to also include mobile voice and broadband services. Using this low frequency band is a key enabler due to its beneficial properties in through-wall propagation. The operator will offer cognitive femtocells to its customers, which will then be installed in people’s homes and in offices. It is assumed that the range of the femtocells will extend outside the walls of the houses and buildings and that they are open for access to users passing by. The operator uses its fixed broadband network to provide backhaul capacity for the cognitive femtocells. It is assumed that the femtocells will be LTE femtocells, meaning that LTE terminals will be able to connect (clearly there are no LTE terminals that support this frequency band now, but it is assumed that such support will come in some years). 

Wi-Fi extension – Public hotspot – Extending indoor coverage to outdoor

Different uses of cognitive femtocells

The fixed operator can extend its business towards mobile services without acquiring spectrum licences and without having to build outdoor sites or to get access to other operators’ sites. It can utilize its own infrastructure and the existing customer relations.

Business case for the “Cellular extension in whitespace” scenario

A possible business case for “Cellular extension in whitespace” is that a cellular operator with an existing infrastructure uses TV whitespace spectrum in a cognitive way to enhance its mobile broadband offer. The enhancement will mainly be in the form of additional capacity for serving more customers and/or offer higher capacity to each user. For the cellular operator, this can be seen as an alternative to waiting for some of these frequencies to be freed from TV use to mobile broadband (“Digital Dividend 2” – DD2) and acquiring spectrum there via spectrum auctions. When (and if) a DD2 spectrum auction comes, the operator can try to get licensed spectrum to secure that its network has the necessary capacity to serve its customers. The additional revenue may then stem from e.g.

  • Increased number of customers because of more capacity available
  • Additional ARPU (Average Revenue Per User) because some customers shift to “premium” products
  • Reduced churn because of improved customer satisfaction

 

 

 

Cellular extension in whitespace applied to LTE

Business case for the “Rural broadband” scenario

The rural broadband business case is applied to the situation where a service provider cannot already provide fast enough broadband to customers using existing fixed-line infrastructure. The reason for the low fixed-line speeds is often due to the line length between a customer and the nearest exchange. Upgrading the fixed line infrastructure (for example, installing fibre-to-the-building or fibre-to-the-node) is often not economically viable when groups of customers are small and far from an exchange.

TV whitespace spectrum is suitable for reaching these sorts of customers as the frequencies should be able to propagate for several kilometres (distance is dependent on many factors including maximum allowable transmit power and terrain). This means that base-stations can be deployed on existing infrastructure that the network operator owns or has access to. The business benefits for rural broadband can include:

  • Reduced costs - Compared to the alternative option of improving the fixed line infrastructure.
  • Increased revenue – More customers can now receive a broadband service.
  • Reduced customer churn on customer phone lines – A service provider typically provides broadband along with phone lines. Customers now have extra incentive to keep their phone line with their service provider.
  • Subsidies – Some governments/councils are subsidising rural broadband developments as a way to reduce the growing digital divide between rural and urban areas.

 

 

Rural broadband using TV whitespaces

 

Business case for the "ad-hoc" scenario

The "ad-hoc" network for emergency situations has a clear benefit for social welfare, which should greatly help the business case. To justify the business case for emergency scenarios it is essential to gain accurate requirements about the connection reliability. This will also give an indication of the maximum single-hop distance that can be allowed in this deployment.

 

An emergency cognitive ad-hoc network

For machine-to-machine communications there is already an interest in smart meters. TVWS could be a suitable way to connect smart meters in homes to the wide area network due to its favourable propagation characteristics.

All of the business opportunities described here are discussed in more detail in the QoSMOS whitepaper on “Business opportunities and Scenarios for Cognitive Radio” (link). The final deliverable on "Economic Benefits of a QoSMOS System" (D1.6) will be available after December 2012.