Economical approach to optimal spectrum operation in mobile networks

We consider an economic approach for spectrum operations in mobile networks. We present the investment function of base stations according to the number of FAs assuming the linearity of cell splitting. We show that there is an economic amount of spectrum which corresponds to the optimal number of FAs that minimizes the investment. We analyze the impact of the cost structure and the traffic distribution in base stations on the economic amount of spectrum. This paper is applicable to an economic spectrum operation for mobile operators. In addition, the national regulatory authority can use the economic amount of spectrum as the minimal amount for spectrum allocation.