Today’s spectrum managers seek to maximise economic and societal benefits when allocating scarce spectrum resources. The drive to deliver efficient spectrum allocation is reflected in the use of incentive-based pricing, which aims to estimate the economic value of spectrum. Auctions, benchmarking, spectrum trading and economic modelling are the tools spectrum managers apply to achieve their objectives.
Spectrum Trade Economic Price (STEP)
STEP is a spectrum benchmark product available for a fixed fee. Using data from our Global Spectrum Awards database we provide an independent international benchmark report for a specified spectrum band customised for your region or country to establish the commercial value of the spectrum. This product is easy to purchase and gives you a professional, cost-effective and quick guide for:
- reserve pricing
- strategic planning for upcoming auctions / renewals / allocations
- accounting / financial purposes
- analysis of spectrum allocation by company / countries / regions
- to inform asking prices where administrative pricing is used.
Valuation of digital dividend spectrum in New Zealand
We provided an independent spectrum valuation of the 700MHz band for the New Zealand Government, to be used as the basis of setting reserve prices in the 2013 digital dividend auction. To ensure robust and reliable estimates we used a combination of approaches: business modelling of New Zealand mobile operators and benchmarking – based on data from our Global Spectrum Awards database.
Calculation of spectrum renewal prices for New Zealand
In this study for the New Zealand Ministry of Economic Development we calculated the offer price for the renewal of spectrum management rights for cellular mobile services in the 800MHz and 900MHz bands using the incremental Optimised Deprival Value (ODV) approach. We consulted with industry stakeholders and also confirmed that the ODV-calculated value was within a reasonable range based on New Zealand and overseas benchmark values.
On behalf of the Australian Government, we examined the spectrum trading experiences of a number of organisations, exploring the extent of trading activity, identifying potential barriers to trading and establishing opportunities for improving the current trading regime from a stakeholder perspective.
For OFCA, the Hong Kong regulator, we explored the potential impact on service quality and customers after a re-assignment of 3G spectrum (1.9 – 2.2GHz band) under a number of different possible re-assignment scenarios. As the analysis spanned several future years we forecast demand requirements and considered technology developments, including evolution of 3G and 4G technologies, multiple-input and multiple-output (MIMO) technology, and the use of femtocells. Other supply considerations included spectrum held and deployed by each mobile network operator for provision of mobile services, the Spectrum Release Plan, and the availability of additional spectrum for provision of 3G and 4G mobile services via refarming spectrum in other frequency bands.
Spectrum for public safety mobile broadband
We conducted a peer review of the Australian Productivity Commission's economic analysis of a public safety mobile broadband (PSMB) network under various options, including the reservation of dedicated spectrum for that purpose. We found that the Commission’s methodology and assumptions were in general reasonable for Australian conditions, but recommended that some inputs be reviewed or assessed via sensitivity testing, in particular where information is uncertain due to the lack of PSMB applications and comparable networks.
Spectrum management plan
We advised on technical issues associated with the spectrum management plan on behalf of the Government of a developing country. In particular we addressed the allocation of GSM and LTE mobile spectrum, the application of standards and the planning of compatible band allocations for the country’s backbone microwave networks, identification of risk areas where domestic use of older or non-standard radio systems may interfere with planned satellite access, and the allocation of spectrum for future fixed and mobile broadband access.