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Electronics
  • Article
  • Open Access

Published: 21 December 2021

Optimization of the Spectrum Splitting and Auction for 5th Generation Mobile Networks to Enhance Quality of Services for IoT from the Perspective of Inclusive Sharing Economy

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,
and
1
Department of Management Information Systems, Organic Cooperative Ecosystems and Value Creation Research Centre, National Chengchi University, Partner of DMGG+, EU Horizon No. 777536, Taipei 106, Taiwan
2
College of Science and Technology, Ningbo University, Ningbo 315211, China
3
Taiwan Network Information Center (TWNIC), Taipei 105, Taiwan
*
Authors to whom correspondence should be addressed.
This article belongs to the Special Issue Advanced Communication Techniques for 5G and Internet of Things

Abstract

Fifth generation (5G) mobile networks can accomplish enhanced communication capabilities and desired to connect things in addition to people. By means of optimally splitting the spectrum to integrate more efficient segments, mobile operators can deliver better Quality of Services (QoS) for Internet of Things (IoT), even the nowadays so-called metaverse need broadband mobile communication. Drawing on the Theory of Quality Value Transformation, we developed a 5G ecosystem as a sustainable organic coalition constituted of planners, providers, and users. Most importantly, we put forward the altruism as the ethics drive for the organic cooperative evolution to sustain the inclusive sharing economy to solve the problem of the Theory of Games and Economic Behavior. On the top of the collaboration framework for the coalition game for 5G, we adopted Pareto Optimality as the target situation for the optimization via cooperative evolution and further apply ISO 25000 to define the metrics for the value of 5G corresponding to Pareto Frontier. Based on the collaboration framework as above, we conducted a survey to gather the features and costs for the 5G spectrum in relation to IoT and the financial status of the mobile operators as the constraint for the optimization. Taking Simultaneous Multi-Round Auction (SMRA) as the standard rule for spectrum auction, we developed a novel optimization program of two hybrid metaheuristics with the combination of Simulated Annealing (SA), Genetic Algorithm (GA), and Random Optimization (RO) for the multiple objectives of quality, usability, and costs. The results of the simulation show that the coalition game for 5G spectrum auction is a dynamic group decision in which the government authority and mobile operators can achieve a synergy to maximize the profits, quality score, and usability, and minimize the costs. Last but not least, the hybrid metaheuristic with SA and RO is more efficient and effective than that with GA and BO, from the perspective of inclusive sharing economy. It is the first study of its kind as we know.

1. Introduction

The advent of ICT has been brought the world into Inclusive Sharing Economy in relation to New Economy, along which ICT resources, including knowledge and services, become the common wealth for this crowded world. On the stride of the sustainable development, Inclusive Sharing Economy has been take place and ICT ecosystems become the fundamental infrastructure for sustain evolution of the world.
5G mobile networks are expected to realize enhanced devices and communication capabilities with greater efficiency, throughput, and lower latency [1] and to connect things so that it is most important for mid- and long-range Interne of things (IoT) [2]. The release spectrum for 5G could allow mobile companies to increase their communication capacity and allow users to take advantage of more effective and trustworthy services. The spectrum is a scarce resource and hence relies on optimal spectrum splitting and auction to provide more efficient segments to integrate so that mobile operators can deliver better Quality of Service (QoS), particularly for IoTs. Therefore, mobile companies now engage in innovative IoT services, such as smart cities, e-healthcare, smart agriculture, etc. with 5G. Along with this trend, 5G IoT becomes the core techniques for the digital transformation into sustainable world.
Spectrum splitting and auctions are normal for the governmental authorities to allocate specific bands efficiently to the operators and maximize the release revenue. In Taiwan, the National Communications Commission (NCC) is the competent authority to hold spectrum auctions [3,4]. To ensure fairness, efficiency, and transparency, the NCC follows the regulation process and publishes the available frequencies for the mobile spectrum [4]. Operators need to prepare strategies for tender bids. The bidding spectrum is costly and competitive.
Numerous factors ought to be considered for designing an effective spectrum splitting and auction [5]. Conventional research has focused on finding different ways of auction to maximize the number of segments, the efficient allocation of segments to operators, and the revenue for government authorities. In a prior study, researchers developed an optimization model to balance multiple targets, such as the number of segments, time for auction, and costs among the authorities and operators from the perspective of revenue [5]. The results show that spectrum splitting and auctions are dynamic gaming processes that involve the government authorities and mobile operators so that spectrum splitting is not just the work of government authorities. However, quality was implied only implicitly within the number of segments related to throughput, and other quality features for communication (e.g., latency and penetration rate) were ignored. Second, the target of the optimization of the study was limited in terms of the number of segments and revenue, which is not enough for the 5G ecosystems. Therefore, we define the metrics of quality and value for the evaluation of benefits and costs and present the target for the optimization of the equilibrium of 5G ecosystems with respect to the symmetry of the positions of the participants in the coalition game of spectrum auction.
In Section 2, we present a survey on the theory of organic ecology, quality value transformation, metrics for quality and value, coalition game, optimization algorithms, and experiences of mobile spectrum. In Section 3, we demonstrate, for the spectrum planner, the prediction of the spectrum value and cost function for the optimization, market share, and Net Present Value (NPV) for the investment on spectrum and standard spectrum auction procedure in Taiwan. In Section 4, we introduce the hybrid metaheuristic optimization program to maximize the number and quality of segments and revenue and minimize the cost through a coalition game aiming at the equilibrium of the 5G ecosystem according to SMRA. For the hybrid metaheuristic optimization program, we align SA and GA to determine the optimal number of bidding rounds for improvement to obtain the optimal revenue with the anticipated number of segments in each band and quality; RO is used for bidding to determine the acceptable number of segments in each band and the quality score with respect to the cash flow and profit for each operator. Then, we analyze the results of both optimization strategies and compare the effects of the two strategies with respect to the equilibrium of participants in the auction. Last, we provide suggestions to the regions with different cultures and policies.

3. Tasks for the Spectrum Providers

3.1. Prediction of Spectrum Value

3.1.1. Prediction of the Spectrum Value for 600 MHz Band

The final average cost of the bid of the USA in 2017 was USD 0.88/MHz-pop in 19.6 billion USD for the spectrum of 70 MHz at 600 MHz (Table 1). The consumer price index (CPI) in February 2017 was 99.96, and the CPI in February 2018 was 102.15. Consequently, the inflation rate is as follows:
Inflation Rate = (CPI2018CPI2017)/CPI2017 = 2.19%
The spectrum value of 600 MHz band after 2020 can be estimated using the inflation rate shown in Equation (3):
After-Inflation = Cost × (1 + Inflation-Rate)year = $28.41
The cost an operator spends will be NTD 8.523 billion/segment, that is, equal to NTD 28.41 × 10 MHz × 30 million consumers.

3.1.2. Prediction of the Spectrum Value for 800 MHz Band

Since 2012, the EU has initiated auctions for a spectrum of 800 MHz [5]. The potential value of the spectrum of the 800 MHz band after 2020 can be predicted using the outcome of the EU’s auctions. We use the average inflation rate from the month of the auction to the same month of 2017 to calculate the spectrum value of the 800 MHz band. The potential value of the 800 MHz band should be the average price of NTD 27.534/MHz-pop, therefore the price for a segment will be NT$ 8.2602 billion in Taiwan.

3.1.3. Prediction of the Spectrum Value of L-Band

Plum performed three levels of prices for L-Band: high, medium, and low [76]. The high-level stands for €0.60/MHz-pop and is the mean value of the upper-bound price of those below 1 GHz. The medium-level price stands for €0.40/MHz-pop, where the lower-bound price is that of those below 1 GHz. The low-level stands for €0.25/MHz-pop, which signifies the price that ought to be significantly lower than that of others below 1 GHz. Consequently, the spectrum value of 1.4 GHz can be outlined in Table 2.
Table 2. The spectrum value of 1.4 GHz.
Considering the practical status in Taiwan, we used a high price level for the prediction. The potential spectrum value of L-Band was for NTD2 5.247/MHz-pop. From June 2011 to June 2017, the average inflation rate was 0.888%. Accordingly, the predicted spectrum value of L-Band after 2020 was NTD 27.338/MHz-pop, and the fee for one segment was NTD 8.2014 billion.

3.1.4. Prediction of the Value of Spectrum of C-Band

The value of the spectrum of C-Band can be estimated by referring to the economic indicators that result from the auction, national population, purchasing power parity (PPP), and CPI from the World Bank. Hereby, the global average price is approximately 0.0152 €/MHz-pop, and the EU average price is 0.0084. However, the global average price remains at approximately 0.0116, drawing on the average price data since 2010 [5]. In a report by the Commission for Communications Regulation (ComReg), the prices were predicted to be €0.0152/MHz-pop according to the worldwide data, €0.0084/MHz-pop according to the EU’s data, €0.0116/MHz-pop according to the worldwide data after 2010, and €0.0380/MHz-pop according to the EU’s data after 2010.
Because the C-Band had been used for the satellite but not for IMT for 5G previously, we applied the price calculated using the worldwide data after 2010, that is, NTD 0.415/MHz-pop. The inflation rate was 0.96%. Hence, the spectrum value after 2020 was NTD 0.431/MHz-pop, and the price for one segment was NTD 129.3 million.

3.2. Estimation of the Cost Function

The costs for the spectrum consist of the spectrum acquiring cost and equipment construction cost. The spectrum values discussed above indicate the revenue from auction for the spectrum provider, such as NCC, but is the variable cost for the users, such as the mobile operators, which will be determined during the bidding as the forward spectrum auction can be conducted in the USA for the 600 MHz band.
In contrast, equipment construction costs are fixed. According to the discussion and based on the data provided by Telecom Technology Center (TTC) [77], we can estimate the following numbers. The number of base stations for 600 MHz was 1120 (equal to 1400 × 0.8). The number of base stations for 800 MHz was 1900 (equal to that for 900 MHz). The number of base stations for L-Band was 2527 (equal to 1900 × 1.33). The number of base stations for the C-band was 6395 (equal to 1900 × 3.366) [78]. We can calculate the cost of the equipment per segment by multiplying the number of required base stations and the cost of NTD 1,887,317 together.

3.3. Quality Features and Costs of the Spectrum

Because the purpose of this study is to enhance the QoS, we need metrics to measure quality. According to ISO 25000, the basic attributes of quality include efficiency, throughput, and latency. The throughput depends on the bandwidth in relation to the number of segments that will be determined in the auction. Therefore, in this phase, we considered the efficiency factor that affected the quality in this phase.
The higher the frequency, the higher the latency, the shorter the transmission distance, and the lower the penetration rate. Therefore, we assigned the quality score to each frequency band with a quality score of 4 to 600 MHz because of the lower frequency and a score of 1 to 3600 MHz (L-band) because of the highest frequency. The quality score is a comparative value among the frequency bands used to measure the QoS. Finally, the price and quality score are calculated per unit of total cost, as shown in Table 3.
Table 3. Quality features and costs of the spectrum.

3.4. Financial Status of the Operators

The number of consumers/SIM-cards for mobile communication is approximately 30 million in Taiwan. In Taiwan, there are five mobile operators: CHT, TWM, FET, TSTAR, and APTG. After the information announced by the NCC regarding the market share in the 3rd quarter of 2017 (Table 4), we calculated the number of consumers that each operator ought to serve, as shown in Table 4 [79].
Table 4. Market share of the mobile operators in Taiwan.
Thereafter, the ARPU was calculated for each operator and transformed into that of 2020. The average inflation rate was 0.74% within Q3 of 2017. Thereafter, the ARPU was 682.4 for the CHT, 647.7 for TWM, 775 for FET, 502.3 for TSTRT, and 462.5 for APTG [79]. The forecasts of ARPU in 2020 were 697.66 for CHT, 662.19 for TWM, 792.33 for FET, 513.53 for TSTAR, and 472.84 for APTG (Table 5).
Table 5. The average revenue per user (ARPU) of the mobile operators.
Considering the discounting rate, a positive NPV indicates that the return rate of investment is higher than the discount rate. We often apply WACC to set the discount rate [5] and consider the capital cost of WACC as the minimal required ROI [5]. We documented the WACC of each mobile operator in Taiwan for five consecutive days starting from 6 March 2019 [5]. Because there were no available data on TSTAR, we used the WACC of the other four operators to estimate the discount rate, that is, 6.22%.
The monthly revenue of each operator can be calculated by the ARPU times the number of customers of each operator (Table 6). The NPV of the 15-year (180 months) license can be calculated using the discount rate of 6.22%, as shown in Equation (5). NPV considering future cash flow for operators to invest in spectrum auctions [4,58].
N P V = t = 1 180 A R P U t   X   U s e r   N o . ( 1 + 6.22 % ) t
Table 6. Revenue of the mobile operators in Taiwan.

3.5. Standard for Spectrum Auction in Taiwan

The NCC adopted SMRA for the 4G broadband auction [3]. In the 1st phase, buyers competed against quantity-based bidding in multiple rounds. Because each mobile operator only bids the spectrum, but not the segments inside, we assumed that the base prices of all segments were deemed to be equal in the first round. In the 2nd phase, the competition was based on location-based bidding. All nominated bidders must issue a letter of intent for the frequency location. When the frequency location carried out did not overlap, the nominated frequency location was determined based on the aforementioned letter. If the segment location could not be determined, a one-round session was held, and the price for bidding was counted based on units of NTD 1 million. The contiguous spectrum eliminated fragmentation and avoided degrading the provisioning efficiency [80], that is, a plus for quality. We assumed that companies preferred to pay more to obtain segments of the same frequency.

4. Methodology and Experiment

4.1. Optimization Program

According to SMRA, the optimization program was designed in three phases. The first one that decides the best iteration of such—to decide the optimal iteration of auction—is called the time algorithm (TA), where the number of iterations indicates the rounds required by the participants to improve their decisions, it is the most significant part of our optimization approach to realize the continuous improvement of the organic agents’ behavior and the ecosystem as a whole. The second one allocates the optimal segment in each frequency—to obtain the optimal revenue for the number of segments cut in each band—and the total costs for the operators, that is, the expected outcome of the provider, such as NCC, was named with the segment algorithm (SA). The last one that works to maximize revenue by allotting segments to the operators under cost restriction is called bidding algorithm (BA) that will determine the perceived value of benefits and costs producing meaningful attributes, whereby this study emphasizes quality.
As shown in Figure 1, the segment algorithm can approximate the optimal number of segments within each band for the auction. These numbers are used to simulate the bidding scenario and calculate the cost and revenue of the operators. If the revenue is higher than the cost, the operator will consider the segment, and the segment is assigned to this operator. Otherwise, the segment is assigned to another operator. Repeat this procedure to the next auction segment until all operators are unable to bid or all segments are allocated.
Figure 1. Flow of three layers optimization.
We develop two kinds of hybrid metaheuristics, SA and RO, as well as GA and RO, and then compared the effects of both. For the time and segment algorithms, we used SA and RO, respectively. Because the decision in bidding may be influenced by random noise such as news and disturbance of sudden deficit of cash flow, and even irrational behaviors of some operators, we used RO for the bidding algorithm, which could minimize the risk resulting from randomness and lead to an improvement in bidding. For this purpose, we had to modify the algorithms for spectrum splitting and auction for SMRA.

4.1.1. Simulated Annealing (SA)

To cope with the time and segment algorithms, we formulated simulated annealing as described below (see Table 7).
Table 7. Simulated Annealing.

4.1.2. Genetic Algorithm

To cope with the optimization of spectrum splitting and auction, the GA consists of the steps as shown in Table 8.
Table 8. Genetic Algorithm.

4.1.3. Hybrid metaheuristics of SA and RO

The bidding RO revolves around Segment SA until the termination condition is satisfied. The segment SA randomly changes the number of segments and throws the value to the bidding RO to obtain the next optimum result repeatedly. Then, time SA changes the number of iterations and throws it to the segment SA again to obtain the variance, optimal revenue, and the optimal number of segments. When the time SA stops, the outcome of the minimal variance becomes optimum, which includes the optimum spectrum splitting, the optimum assignment to each operator, and the optimal auction revenue.

4.1.4. Hybrid Metaheuristics of GA and RO Algorithm

As previously mentioned, the algorithm consists of three parts: the time GA, segment GA, and bidding RO. The time GA produces the optimal number of iterations for improvement. Segment GA was used to optimize the number of segments from spectrum splitting. The bidding RO assigns segments to operators.
First, the time GA randomly obtains the population size of iterations and then passes the variables to segment GA. After segment GA obtains the iteration variables, it randomly obtains the population size of the segments and throws these variables to the bidding RO. Then, the bidding RO randomly assigns segments to the operators while receiving the segment variables, and the optimization process proceeds with respect to the cost function. The bidding RO processes are repeated until all the operators are unable to bid or all segments are assigned. Bidding RO indicates a process resulting from dealing with the population of segment GA. Thus, the best value becomes optimum for this population. After sorting, segment GA removes some segments at a certain rate and completes the population using crossover and mutation, and passes the new population to the bidding RO. The entire process repeats sorting, elitism, crossover, and mutation until the maximum generations appear. Segment GA is repeated according to the number of iterations of time GA, and then the program records the variance. The complexity should be O (2m + n), where m is the number of spectrum providers and n is the number of users.

4.2. Experiment Results

According to previous studies [1,6,71], we set the cooling rate of SA as 0.95; for GA, we set the mutation probability as 20%, population size as 10, and crossover probability as 30%.

4.2.1. Result of SA and RO

In the simulation, all variances are produced through optimal revenues under different number of iterations. The goal of the time algorithm is to find the best stable number of iterations; thus, we chose the one with minimum variance. As a result of time SA, the best round was 11, and the minimal variance was 7158.
The revenue of the spectrum auction is shown in Table 7, which presents the optimal revenue of the combination of segments by the iteration from time SA. We obtain the maximum revenue of NTD 185.94 billion at the 4th combination. That means the best result can be finished at most in eleven rounds of improvement of bidding in our case.
The segment combinations obtained by bidding RO are shown in Table 7, which represents the combination of segments corresponding to the optimal iteration in the 11 rounds. From Table 7, we also learn that the maximum revenue is NTD 185.94 billion by the combination of 12 segments at 600 MHz, 6 segments at 800 MHz, 4 segments at 1400 MHz, and 10 segments at 3600 MHz spectrum. The total cost, including equipment construction costs, resulting from this combination is 372.59 billion (Table 9).
Table 9. Result of SA revenue and bidding RO.
The combination of the spectrum segments for each operator presents the optimal situation obtained by assigning the segments to the operators in the 4th round of the improvement, as shown in Table 10. Comparing the expected optimal value for NCC resulted from segment SA and the actual perceived value for the operators resulted from bidding RO, the operators obtain fewer segments and lower quality score as planned for NCC; however, they can reduce the total costs and increase the number of segments and quality scores per total costs than that planned for NCC. It indicates that the operators are in symmetric position as NCC in the auction. From the benefit of the operators, Company C wins highest number of segments and quality score and obtains the highest quality score per cost. The result matches the situation of market share as shown in Table 10. Moreover, even Companies D and E have relatively better performance in the auction in comparison to their market shares. This indicates that the optimization results in symmetric positions of the operators corresponding to their market share.
Table 10. Result of SA revenue and bidding RO.

4.2.2. Result of GA and RO

The maximal iteration number from the time GA was 5 and the variance is 290. The maximum revenue from the segment GA was NTD 208.92 billion from the 3rd round. The optimal combination in each of the 5 rounds. The maximal revenue results from the combination of 7 segments of 600 MHz, 8 segments of 800 MHz, 10 segments of 1400 MHz, and 9 segments of 3600 MHz spectrum, also shown in Table 11.
Table 11. GA revenue and bidding RO.
The combination of the spectrum segments for each operator from bidding RO is shown in Table 12 that presents also the optimal situation obtained by assigning the segments to the companies in the 3rd round. Comparing the expected optimal value for NCC resulted from segment SA and the actual perceived value for the operators resulted from bidding RO, the operators obtained fewer of segments and lower quality score than planned for NCC; however, they can reduce the total costs and increase the number of segments and quality score per total costs than that planned for NCC. This indicates that the operators also have a symmetric position to NCC in the auction.
Table 12. Result of GA and RO.
Comparing the benefit of the operators, Company A wins highest amounts of segments and quality score and obtains the highest quality score per cost but lower quality score than Companies B and C. Company C wins the best combination of segments with one contiguous spectrum in 800 MHz with the highest quality to costs ratio. The result does not match the situation of market share (Table 4); however, the consequence is that Company C has the highest APRU (Table 5), that is, higher revenue from its customers so that it is in the best position in the bidding. Companies D and E fall into the worst situation in which they can only obtain one segment in 3600 MHz that leads to the highest cost of equipment construction and the worst QoS with regard to penetration rate. This indicates that GA results in asymmetric positions of the operators in the auction.

4.3. Analysis and Discussion

The results of both hybrid metaheuristics reflect the difficulties the operators are facing. Operators on the one hand need to collect available information and learn the actions of other competitors; on the other hand, they need to adjust their strategic reaction according to the result of each round and make decisions based on their financial constraints. According to the regulation SMRA, operators can bid in location-based bidding for the frequency location selected from several permutations of segments, so the aggregated result could vary and converge to the local optimum. It is this viable characteristic that affects the non-deterministic result of the revenue of the authority.
Due to the random walk property of RO, the experiment converges quickly while assigning the segments to each operator. This conforms to the status of the operators’ decision in the last moment that all decisions could be based on limited information and the speculation of competitors’ reaction and are required to be made in the instant.
The result of SA shows that the governmental authority can earn more revenue with optimal expected combination of segments, i.e., 185.94 billion for 32 segments in total and a quality score of 84, and brings the total cost of 372.95 billion, as shown in Table 13. The attributes include 0.09 segments per costs and 0.23 quality score per cost. With bidding RO, the actual perceived benefits counts for 24 segments in total with a quality score of 73 and the total cost is 285.99. The meaningful attributes are 0.09 segments per costs and 0.26 quality score per cost, utilization rate are 0.71 for segments and 0.88 for quality. In the auction, the operators obtain fewer segments and lower quality score than the provider NCC can expect, but still can reduce the costs and increase the quality to cost ratio. Further, the utilization rate shows the operators have accepted the resources just fitting for their usage and avoid waste. It means, following the strategy of SA, the operators are in the symmetric position to improve the outcome of spectrum splitting and auction and favor themselves especially to win the more of quality with lower costs.
Table 13. Result of Simulated Annealing and Random Optimization.
The result of GA shows that the governmental authority can earn even more revenue with optimal expected combination of segments, that is, 208.92 billion for a total of 34 segments and a quality score of 81, resulting in a total cost of 408.72 billion, as shown in Table 14. The expected attributes include 0.08 segments per costs and 0.20 quality score per cost. With bidding RO, the actual perceived benefits count for a total of 24 segments with a quality score of 71 and a total cost of 311.92. The meaningful attributes are 0.09 segments per costs and 0.23 quality score per cost, utilization rate are 0.75 for segments and 0.87 for quality. In the auction, the operators obtain fewer segments and quality scores than the provider NCC expects, but can still reduce costs and increase the quality to cost ratio. This indicates that following the strategy of GA, the operators are in a position to improve the effect of spectrum splitting and auction and favor themselves.
Table 14. Result of Genetic Algorithm and Random Optimization.
Comparing the results of SA and GA, the GA strategy does not only bring more benefits to the provider, for example, NCC, but also higher costs that the users have to suffer and its usage of segments is higher than that of SA and the quality is lower than that of SA. This indicts, GA wastes resources and gains low quality so that it is not a ideal way for sustainable development. This appears that the GA supports egoism of the provider NCC and fittest one so that the operators are in the asymmetric position in the game and thus suffer from costs, which indicates that the provider and the fittest one such as Company C receive most benefits unilaterally and that the coalition wants to avoid. Secondly, GA delivers lower value/price ratio, that is, number of segments per cost and quality score per cost than SA does. This indicates that a system following SA is more efficient than that following a GA from the perspective of inclusive sharing economy. For the situations of deadlock of policy or difficulty of building the law or a consensus, it is a possible way to enter the 5G ecosystem. Last but not least, we found in the simulation that the approach with SA and RO runs significantly faster than that with GA and RO with the same computer setting. It could be a sign that the way of SA and RO can accelerate the decision in the coalition game of auction.

5. Conclusions

For the enhancement of the QoS for 5G IoT, the goal of this study is to optimize the 5G spectrum splitting and auction from the perspective of inclusive sharing economy. Drawing on the Theory of Quality Value Transformation, we developed a 5G ecosystem as a sustainable organic ecosystem constituted of planners and providers and put forward altruism to sustain the equilibrium of 5G coalition. Thereafter, we adopted Pareto Optimality as the target for optimization for inclusive sharing economy and consider the optimization as a cooperative evolution process. For the measure of quality and value of services, we defined the metrics with respect to Pareto Frontier for value creation based on ISO 25000.
On the top of the aforementioned open cooperation evolution framework for the coalition game, we conducted a survey to find the available bands for 5G and estimated their values and the cost of the equipment construction for each available band. We also gathered information about the number of customers each mobile operator serves in Taiwan to calculate their market shares and APRU and then derived their NPVs for the investment on the 5G spectrum.
Taking SMRA as the standard rule for the optimization of spectrum auction, we developed a novel optimization program with three phases, viz. the time algorithm determines the best number of the bidding runs, the segment algorithm handles the optimal number of segments in each bind that can bring the maximal revenue, and lastly, the bidding algorithm assigns the segments to the operators according to the perceived value of benefits, including quality and costs that produce meaningful attributes. Then, we designed two hybrid metaheuristics for the cooperative evolution with multiple objectives of quality, usability, and costs. For the overall optimization, we applied SA and GA to implement the time and segment algorithms, respectively, and then used RO to implement the bidding algorithm.
The experimental results show that the coalition game for 5G spectrum auction is a group dynamic decision. With RO, the bidding converges quickly while assigning segments to each operator owing to its random walk property. SA and GA can not only bring maximal revenue with optimal combination of segments and higher quality and usability by the improvements in each round, but also minimize the costs. However, the strategy based on GA tends to support the egoism of the dominating partner such as NCC and the fittest participant so that the other operators suffer from higher costs and lower quality, which is what the coalition game likes to avoid. This indicates that splitting and auction following SA are more efficient and effective than those following GA from the perspective of inclusive sharing economy.
The contributions of this study can be summarized as follows:
  • Application of HyQVS organic ecosystem framework for 5G community for inclusive sharing economy.
  • Application of Pareto Optimality as the strategy for the optimization with cooperative coevolution.
  • Definition of metrics for quality and value of mobile spectrum based on ISO 25000 with respect to Pareto Frontier.
  • Establishment of coalition game for spectrum splitting and auction and putting forward altruism to sustain the equilibrium of 5G IoT ecosystem to solve the deficit of conventional behavior economics that is a significant breakthrough of this study.
  • Development of hybrid metaheuristics for the cooperation evolution with combination of SA, GA, and BO for the optimization of spectrum splitting and auction for multiple objectives of QoS, value, and costs.
  • Evaluating the effects of different hybrid metaheuristics for the optimization of spectrum splitting and auction from the aspect of inclusive sharing economy.
  • Suggestion for the ICT resource sharing in regions with different cultures and policies based on the analysis of the results of this study.
The ecosystem for the coalition game for 5G spectrum splitting and auction in this study involves planners and providers, viz. governmental authorities, and users, viz. the mobile operators. It is a kind of small-scale ecosystem that belongs to the topologies of multiple organic agents with or without unified rules as described in [6]. The sharing infrastructure of base station and equipment construction to save the cost of all carriers and even special advantages to new operators to maintain the equilibrium of the market, building more sophisticated models as well as renewing the analysis are also beneficial to the practices. For the distributed autonomous agents, we should apply PSO and FFO and test their effects of the ecosystems for SIoT and MIoT services in the future.

Author Contributions

Conceptualization, J.K.C. and Y.-F.C.; methodology, J.K.C. and Y.-F.C.; software, Y.S.; validation, Y.S. and C.-L.L.; formal analysis, Y.S. and C.-L.L.; investigation, J.K.C. and Y.-F.C.; resources, C.-L.L.; data curation, Y.-F.C.; writing—original draft preparation, J.K.C. and Y.-F.C.; writing—review and editing, J.K.C. and C.-L.L.; visualization, J.K.C. and Y.-F.C.; supervision, Y.S. and C.-L.L.; project administration, J.K.C. and Y.-F.C.; funding acquisition, C.-L.L. All authors have read and agreed to the published version of the manuscript.

Funding

This research was funded by K.C. Wong Magna Fund in Ningbo University (RC190015) and Fundamental Research Funds from College of Science & Technology, Ningbo University (No. YK202115).

Acknowledgments

This research is supported by the Academia Sinica Grid Computing Centre (ASGC) as a part of DMGG+, EU Horizon No. 777536 and TWNIC of NCC Taiwan. The authors express special thanks to hc. Tilo Pfeifer of the RWTH University of Aachen, S.C. Lin and Eric Yen of ASGC, and Kenny Huang of TWNIC NCC for their long-term support.

Conflicts of Interest

The authors declare no conflict of interest.

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