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We consider the problem of partitioning a spectrum band into M channels ofequal bandwidth, and then further assigning these M channels into P licensedchannels and M-P unlicensed channels. Licensed channels can be accessed bothfor licensed and opportunistic use following a tiered structure which has ahigher priority for licensed use. Unlicensed channels can be accessed only foropportunistic use. We address the following question in this paper. Given amarket setup, what values of M and P maximize the net spectrum utilization ofthe spectrum band? While this problem is of fundamental nature, it is highlyrelevant practically, e.g., in the context of partitioning the recentlyproposed Citizens Broadband Radio Service band. If M is too high or too low, itmay decrease spectrum utilization due to limited channel capacity or due towastage of channel capacity, respectively. If P is too high (low), it will notincentivize the wireless operators who are primarily interested in unlicensedchannels (licensed channels) to join the market. These tradeoffs are capturedin our optimization problem which manifests itself as a two-stage Stackelberggame. We design an algorithm to solve the Stackelberg game and hence find theoptimal M and P. The algorithm design also involves an efficient Monte Carlointegrator to evaluate the expected value of the involved random variables likespectrum utilization and operators' revenue. We also benchmark our algorithmsusing numerical simulations.

Optimal Spectrum Partitioning and Licensing in Tiered Access under Stochastic Market Models