Pricing For Spectrum Usage In Cognitive Radios

The radio spectrum is under-utilized in most parts of the world. As a result, there has been efforts in different parts of the world to open the spectrum and design efficient radios that would sense the environments and adapt themselves to the environments as the humans do. Such radios are called cognitive radios. However this open a new problem on how to compensate the service providers, who have paid billions of dollars to use spectrum. Though cognitive radio solves the spectral efficiency problem, it would have to address on how to compensate the current owners of spectrum such that they are not bankrupt. The agile (or cognitive) radios would have to acquire the spectrum to operate. Since spectrum is a resource, we provide a simple pricing mechanism that the agile radios have to follow to acquire the spectrum.