Do open resources encourage entry into the millimeter wave cellular service market?

The resource usage model for millimeter wave bands has been the subject of considerable debate. The massive bandwidth, highly directional antennas, high penetration loss and susceptibility to shadowing in these bands suggest certain advantages to spectrum and infrastructure sharing. In particular, resources that are "open", such as unlicensed spectrum or a deployment of base stations open to all service providers, may offer greater gains in mmWave bands than at conventional cellular frequencies. However, even when sharing is technically beneficial (as recent research in this area suggests that it is), it may not be profitable. In this paper, both the technical and economic implications of resource sharing in millimeter wave networks are studied. Millimeter wave service is considered in the economic framework of a network good, where consumers' utility depends on the network size. Detailed network simulations are used to understand data rates, profit, and demand for millimeter wave service, with and without open resources. The results suggest that "open" deployments of neutral small cells that serve subscribers of any service provider encourage market entry by making it easier for networks to reach critical mass, more than "open" (unlicensed) spectrum would.