Revenue Extraction in Overlay Macrocell-Femtocell System Under Shared Spectrum Model

High-throughput data traffic has gained prominence in the mobile telecommunications. But the service quality is never a grantee due to the nature of wireless communication. This not only degrades the utility of customers but also reduces the revenue of service provider. To overcome such predicament, the overlay macrocell-femtocell system is introduced to enhance the service quality by reutilize spectrum with cognitive operations. The authors propose a novel wireless service revenue framework to investigate the effect of overlay system in increasing revenue. The optimal incentive compatible contract designs in different scenarios are investigated. Numerical results show that optimal contracts extract more revenue than traditional fixed-price contract in both single cell and overlay system.