Abstract
Currently, the mobile markets in every country all around the world have been developing rapidly. The adoption of 3G and 4G services will greatly benefit the economy. Consumers will receive fast and quality telecommunication system and their quality of life will improve. Such development will be beneficial to the production of goods and service in countries raising overall competitiveness both domestically and internationally. Radio spectrum is scarce and invaluable telecommunication resource. Spectrum auction should determine spectrum value as consistent to its actual value. In order to ensure that spectrum is efficiently assigned, spectrum is priced to reflect the value it can add to help promote economic and technical efficiency with users who have bid for it. Putting a price on spectrum not only ensures spectrum management efficiency, but also can add revenue for the government which will in turn cover the cost of spectrum. This paper presents a radio spectrum valuation method by using censored regression method. The contributions in this paper could assist telecom policy makers to gain more understanding in development of radio spectrum valuation.
Highlights
Studies on telecommunication service spectrum valuation were not widespread in the past but becoming more readily available after the year 2000
We focus on the second group which uses economic method in finding the relationship between spectrum price from real auctions in different countries and its determinants
Spectrum valuation by econometrics is easier than the opportunity cost approach as an econometric model needs macro-level data which are usually public
Summary
Studies on telecommunication service spectrum valuation were not widespread in the past but becoming more readily available after the year 2000. To construct censored regression model, the study in [2] categorized determinants of spectrum value (price/MHz/pop) into five groups as shown in Table 1: variables that reflected economic condition and mobile market characteristics, license characteristics, financial obligation, service obligations and auction procedure. According to the studies of spectrum valuation by censored regression in the past, we can categorize variables that have significant effects on spectrum value and have the relationship as predicted by the theory into three groups: 1) factors concerning spectrum demand, 2) factor concerning spectrum auction characteristics and 3) factors concerning pre- and post-auction obligations. Factors concerning spectrum demand are variables that reflect the size of the economy and the needs for spectrum This group includes country’s income, the number of populations, and the time when telecommunication market is booming. These include reservation of license for auction, amount of deposit to be made before auction, annual fee and coverage obligation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
