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Focusing on a femtocell communications market, we study the entrant networkservice provider's (NSP's) long-term decision: whether to enter the market andwhich spectrum sharing technology to select to maximize its profit. Thislong-term decision is closely related to the entrant's pricing strategy and theusers' aggregate demand, which we model as medium-term and short-termdecisions, respectively. We consider two markets, one with no incumbent and theother with one incumbent. For both markets, we show the existence anduniqueness of an equilibrium point in the user subscription dynamics, andprovide a sufficient condition for the convergence of the dynamics. For themarket with no incumbent, we derive upper and lower bounds on the optimal priceand market share that maximize the entrant's revenue, based on which theentrant selects an available technology to maximize its long-term profit. Forthe market with one incumbent, we model competition between the two NSPs as anon-cooperative game, in which the incumbent and the entrant choose theirmarket shares independently, and provide a sufficient condition that guaranteesthe existence of at least one pure Nash equilibrium. Finally, we formalize theproblem of entry and spectrum sharing scheme selection for the entrant andprovide numerical results to complement our analysis.

Entry and Spectrum Sharing Scheme Selection in Femtocell Markets