Abstract
Spectrum trading allows incumbents of spectrum to increase their profit margins by selling portions of unused spectrum to secondary systems. While being a spectrally efficient process; interference from secondary usage degrades the performance of the incumbent network. We propose distributed power control algorithms with incumbent protection for secondary systems which is incorporated in the incumbent's pricing mechanism. Pricing is a fundamental part of the spectrum trading economic model; it indicates the value of spectrum to both buyers (SSP) and sellers (PSP) and influences the forces of demand and supply. There exist a compromise between the accrued revenue from spectrum trading and the resultant QoS degradation caused by SSPs to PSPs. interference from SSPs may increase churn within the PSP network, therefore, pricing algorithms need to be efficiently designed to capture PSPs profit in relation to the magnitude of SSPs interference. We consider distributed power control algorithms (PCA) for the SSP network and allow secondary spectrum trading in TV white spaces (TVWS) and demonstrate that a PSP can profit from secondary spectrum trading without obtrusive interference from SSPs. The power control algorithm introduced therefore ensures that the incumbent's interference threshold is never violated, leading to increased profit and reduced churn for the incumbent operator and improved quality of service for the secondary system due to spectrum buy. © 2013 IEEE.