Factor Exploration and Hierarchical Analysis of Spectrum Pricing: Exploratory Framework

Abstract

Radio spectrum, a scarce resource, refers to the part of the electromagnetic spectrum that corresponds to radio frequencies. These frequencies of up to 300 GHz are known as radio waves and used for radio communications. Telecom and broadcast services industries along with government agencies utilize this spectrum and create infrastructure that allows the emergence of information- driven societies. This makes radio spectrum a crucial resource for any economy. Given its importance in the development of a nation, it is of critical importance to effectively manage this resource. If spectrum policies are formulated carefully, it would not only lead to sustained growth of information broadcasting and communication technology industries, thereby promoting social welfare, but also maximize the revenues generated for the government. This paper explains about three important effects on the scarce radio frequency spectrum. Spectrum management and the need for a valuation framework are being discussed. We looked at three allocation methods (Auction, Beauty Contest and Administrative Allocation) in greater detail. The aim of this study is to develop a total interpretive structure modelling (TISM) framework for spectrum pricing index. The primary objective of the study is to identify the generic factors influencing Spectrum Pricing and subsequently develop the linkages and hierarchy of factor for Spectrum Pricing by using interpretive structure modelling (ISM) and total interpretive structure modelling (TISM) and also subsequently develops the framework. The exploratory framework for spectrum Pricing is not available for regulators, Policy Planner and Industry. This study fulfils that gap.