Using a fuzzy multi-criteria decision making approach to evaluate alternative licensing mechanisms

Abstract

Selecting a licensing policy for third-generation (3G) mobile communications services in Taiwan will have a profound impact on the government’s fiscal income, the advancement of domestic telecommunications technologies and services, and the potential return on investment for 3G licensees. Evaluation criteria should include satisfying multi-goals. The top-level goals are set to satisfy requirements of the government, consumers, and need for competence of the operators. Under each of these three first-tier goals, four second-tier evaluation criteria may be used to assess to what extent the first-tier goals are satisfied. Scholars and experts in the Taiwan telecommunications arena were surveyed to determine their preferences between pairs of evaluation criteria. Additionally, they were asked to estimate the utility scores of each criteria achieved by alternative licensing policies. Fuzzy multi-criteria decision making (MCDM) methodology was then used to evaluate four 3G licensing policies in Taiwan, including: auction, beauty contest, tender, and beauty contest with fixed license fee. The survey results revealed the views and preferences of experts with different backgrounds. The methodology and experience presented in this study could serve as a reference for telecom regulators in constructing their 3G licensing policies.