Reallocating the 700 MHz Band: Should We Do it?

Abstract

The proposal to evaluate the reallocation of the 700 MHz spectrum band in Europe, Africa and the Middle East from broadcasting services to mobile communications, presented during the last World Radiocommunication Conference in 2012, aimed to respond to the increasing demand for mobile broadband and the need to harmonize spectrum use across the world. The final decision is still subject to subsequent analysis and future potential adoption by national governments and the European Union. As this paper shows, this decision requires a careful analysis since, first, the amount of spectrum required for mobile broadband and, most importantly, the timing of the demand are uncertain and, second, the reallocation is not without costs since the 700 MHz band is currently being used in several countries for digital terrestrial television and other services. Assigning too much spectrum to mobile broadband too early at a high cost would lead to an inefficient outcome. A truly efficient allocation of the spectrum would require a more accurate picture of the current use, the exploration of alternative policy and technology options and the promotion of secondary markets for spectrum trading.