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The Case for Unlicensed Spectrum

Author

Listed:
  • Paul Milgrom

    (Department of Economics, Stanford University)

  • Jonathan Levin

    (Department of Economics, Stanford University)

  • Assaf Eilat

    (Compass Lexecon)

Abstract

Demand for wireless data communication has risen rapidly in the past few years, raising important policy questions about how to allocate radio spectrum for this purpose. Historically, the US government has designated some spectrum for licensed use and a smaller but significant amount for unlicensed use. We discuss the advantages of each approach, and explain why unlicensed spectrum in particular has been a catalyst for innovation, and an important complement to licensed spectrum. We also explain why allocating a portion of spectrum for unlicensed use need not reduce government revenue from selling spectrum licenses, and the serious flaws in proposed auction-based approaches for determining the fraction of spectrum to leave unlicensed.

Suggested Citation

  • Paul Milgrom & Jonathan Levin & Assaf Eilat, 2011. "The Case for Unlicensed Spectrum," Discussion Papers 11-002, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:11-002
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    File URL: http://www-siepr.stanford.edu/repec/sip/11-002.pdf
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    Citations

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    Cited by:

    1. Rai, Suyash & Muttreja, Dhiraj & Banerjee, Sudipto & Mishra, Mayank, 2018. "The Economics of Releasing the V-band and E-band Spectrum in India," Working Papers 18/226, National Institute of Public Finance and Policy.
    2. Suyash Rai & Dhiraj Muttreja & Sudipto Banerjeec & Mayank Mishra, 2018. "The Economics of Releasing the V-band and E-band Spectrum in India," Working Papers id:12836, eSocialSciences.
    3. Thành Nguyen & Hang Zhou & Randall A. Berry & Michael L. Honig & Rakesh Vohra, 2016. "The Cost of Free Spectrum," Operations Research, INFORMS, vol. 64(6), pages 1217-1229, December.
    4. Gregory L. Rosston, 2013. "Increasing Wireless Value: Technology, Spectrum, and Incentives," Discussion Papers 12-015, Stanford Institute for Economic Policy Research.
    5. Dmitrii Trubnikov, 2017. "Analysing the Impact of Regulation on Disruptive Innovations: The Case of Wireless Technology," Journal of Industry, Competition and Trade, Springer, vol. 17(4), pages 399-420, December.
    6. Reed, David & Lansford, James, 2014. "Wi-Fi as a Commercial Service: New Technology and Policy Implications," Telecommunications Policy, Elsevier, vol. 38(8), pages 827-837.
    7. Kim, Yongwon & Kim, Yongkyu, 2020. "The Value of Wi-Fi as Entertainment: An Application to Free Wi-Fi in City Buses of Korea," ITS Conference, Online Event 2020 224863, International Telecommunications Society (ITS).
    8. Katz, Raul Luciano & Beltrán, Fernando, 2015. "Socio-economic impact of alternative spectrum assignment approaches in Latin America," 2015 Regional ITS Conference, Los Angeles 2015 146321, International Telecommunications Society (ITS).

    More about this item

    Keywords

    radio spectrum; unlicensed spectrum; managed commons; wi-fi;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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