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This paper envisions a near future in which the proliferation of wireless ad hoc networks in urban centers causes excessive spectrum pollution on currently allocated unlicensed bands. One solution for this problem is for the operators to lease freshly released spectrum from the regulators and sublease it to agencies in major cities. The authors consider one such operator who divides an urban area into regions and subleases spectrum with the condition that the interference measured at boundary points should not exceed a threshold. The subleasing pricing structure has a fixed part, as well as a variable part that discounts the price based on the margin between the interference threshold and the actual interference.
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