On the Radio Spectrum Value for Telecommunication Market Participants

Abstract

Increasing demand for telecommunication services and increased competition for scarce spectrum has led to the introduction of spectrum pricing. Spectrum pricing is the term given to funding and licensing mechanisms that bring economic factors into spectrum management. Spectrum is one of the factors of production, and there is significant need to be able to assess spectrum value properly. It is a scarce but renewable public resource. The current assignment and allocation of spectrum is unlikely to be at market equilibrium, for the simple reason that economic factors have only had a very indirect impact (if any) on past allocation and assignment decisions. The aim of this paper is to discuss the access to the radio spectrum from the point of view of operators, regulator, and customers as well as the possibility of excludability and rivalry.