Best Effort versus Spectrum Markets: Wideband and Wi-Fi versus 3G MVNOs?

This paper asks is whether (i) 3rd generation wireless services, as embodied in theplanned and soon to be offered services emerging first in Asia and Europe, or (ii) theunlicensed wireless services such as 802.11 or wi-fi but also including more advancedwideband and ultrawideband (UWB) services which are being experimented withprimarily in North America, offer more compelling visions for advanced wirelessservices. we conclude that secondary spectrum markets are important for the viability ofthe 3G industry, and not only for reasons of efficiency. One large difference between 2Gand 3G networks, observed in our models, was that voice services alone would notgenerate sufficient revenues for a 3G system. License holders which up to now haveconcentrated on selling a single product, will need to develop a much larger range ofadvanced applications, which will have to be marketed and packaged in different waysfor different market segments.