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Opportunity cost for the digital dividend bandwidth: Application and comparison with LTE auctions outcomes

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  • Garelli, Nicola

Abstract

Radio spectrum represents a scarce resource assigned to operators by national regulatory authorities through auctions, beauty contests or other mechanisms, aimed at introducing sufficient incentives for an optimal use of such a resource. A prerequisite for designing efficient assignment methods is that regulatory agencies, which typically rely on incomplete and asymmetric information, clearly identify the expected value of the spectrum, to be used to set auction bases, prices in beauty contests and administered incentive prices. Those considerations are particularly actual since the transition to digital television transmission opened the space for reallocating parts of the spectrum, to increase its efficiency. The paper aims at refining a techno-analytical approach to estimate the value of spectrum portions, with a methodology based on opportunity-cost evaluation and at comparing the results with the outcomes of the recent LTE spectrum auctions. Research results could be used by regulatory agencies and by operators to better shape their approach to spectrum valuation.

Suggested Citation

  • Garelli, Nicola, 2014. "Opportunity cost for the digital dividend bandwidth: Application and comparison with LTE auctions outcomes," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106895, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb14:106895
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    File URL: https://www.econstor.eu/bitstream/10419/106895/1/816640319.pdf
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    References listed on IDEAS

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    1. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    2. Cambini, Carlo & Garelli, Nicola, 2011. "Evaluation of the opportunity cost of the spectrum: Application to the digital dividend," Telecommunications Policy, Elsevier, vol. 35(7), pages 633-649, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Spectrum management; Digital Dividend; LTE; Opportunity cost; Investment;
    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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