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Spectrum fees and market performance: A quantitative analysis

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  • Cambini, Carlo
  • Garelli, Nicola

Abstract

This paper aims at providing evidence on the impact of spectrum fees and spectrum availability on mobile operators’ industry revenues by using an original dataset of firms operating in 24 Countries in the period 2005–2014. The analysis quantitatively identifies the relationship between mobile market revenue and their determinants, among which spectrum availability and license fees are included. The analysis provides evidence that spectrum availability and fees are not significantly correlated with mobile industry revenues suggesting that market expectations to extract additional revenues from the mobile service following new spectrum auctions are likely not to be respected.

Suggested Citation

  • Cambini, Carlo & Garelli, Nicola, 2017. "Spectrum fees and market performance: A quantitative analysis," Telecommunications Policy, Elsevier, vol. 41(5), pages 355-366.
    • Handle: RePEc:eee:telpol:v:41:y:2017:i:5:p:355-366
    DOI: 10.1016/j.telpol.2017.02.003
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    References listed on IDEAS

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    1. Gruber, Harald, 2001. "Spectrum limits and competition in mobile markets: the role of licence fees," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 59-70, February.
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    3. Gary Madden & Erik Bohlin & Thien Tran & Aaron Morey, 2014. "Spectrum Licensing, Policy Instruments and Market Entry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(3), pages 277-298, May.
    4. Dimitri Lorenzani & Janos Varga, 2014. "The Economic Impact of Digital Structural Reforms," European Economy - Economic Papers 2008 - 2015 529, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    5. French, Richard D., 0. "Governance and game theory: When do franchise auctions induce firms to overbid?," Telecommunications Policy, Elsevier, vol. 33(3-4), pages 164-175, April.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    7. Noam, Eli, 1998. "Spectrum Auctions: Yesterday's Heresy, Today's Orthodoxy, Tomorrow's Anachronism. Taking the Next Step to Open Spectrum Access," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 765-790, October.
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    Cited by:

    1. Howell, Bronwyn & Potgieter, Petrus H., 2024. "Using spectrum set-asides to address distributional objectives: lessons from Canada, New Zealand, South Africa and the United States," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302463, International Telecommunications Society (ITS).
    2. Pantelis Koutroumpis & Martin Cave, 2018. "Auction design and auction outcomes," Journal of Regulatory Economics, Springer, vol. 53(3), pages 275-297, June.
    3. Howell, Bronwyn & Tang, Xin, 2023. "Using spectrum allocations to address indigenous rights claims: The case of New Zealand," Telecommunications Policy, Elsevier, vol. 47(10).
    4. Bahia, Kalvin & Castells, Pau, 2022. "The impact of spectrum assignment policies on consumer welfare," Telecommunications Policy, Elsevier, vol. 46(1).
    5. Jung, Juan & Katz, Raúl, 2022. "Spectrum flexibility and mobile telecommunications development," Utilities Policy, Elsevier, vol. 75(C).
    6. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    7. Agnieszka Kus, 2023. "Do the High Spectrum Prices Harm Consumers? Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 415-437.
    8. Choi, Yong-Jae, 2022. "Spectrum auctions in a thin market: The Korean case," Telecommunications Policy, Elsevier, vol. 46(8).

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    More about this item

    Keywords

    Spectrum availability; License fees; Mobile revenues;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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