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Royalties vs. upfront lump-sum fees in data communication environments

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  • Kwon, Youngsun
  • Kim, Buhm-Kyu

Abstract

Mobile communications markets worldwide, today, are saturated, the number of mobile network operators (MNOs) in market is declining, mobile revenues are stagnant or falling, MNOs are becoming wireless Internet service providers, and economies of scope are strengthening. This paper challenges existing dominant views on spectrum assignment and license fee payments, estimates spectrum fees that MNOs would have paid under royalties and then compares them with upfront lump-sum fees actually paid by 3G licensees. This paper further proposes that governments need to consider assigning additional spectrum to incumbents as needs arise without using auctions and adopting royalties as a way of collecting spectrum fees should they collect them.

Suggested Citation

  • Kwon, Youngsun & Kim, Buhm-Kyu, 2012. "Royalties vs. upfront lump-sum fees in data communication environments," Telecommunications Policy, Elsevier, vol. 36(2), pages 127-139.
    • Handle: RePEc:eee:telpol:v:36:y:2012:i:2:p:127-139
    DOI: 10.1016/j.telpol.2011.11.017
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    References listed on IDEAS

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    1. Nam, Changi & Kwon, Youngsun & Kim, Seongcheol & Lee, Hyeongjik, 0. "Estimating scale economies of the wireless telecommunications industry using EVA data," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 29-40, February.
    2. Kwon, Youngsun, 2005. "Urban comparative statics when commuting cost depends on income," Journal of Housing Economics, Elsevier, vol. 14(1), pages 48-56, March.
    3. Yan, Xu, 2004. "3G licensing in Hong Kong: The debate," Telecommunications Policy, Elsevier, vol. 28(2), pages 213-226, March.
    4. Ure, John, 0. "Deconstructing 3G and reconstructing telecoms," Telecommunications Policy, Elsevier, vol. 27(3-4), pages 187-206, April.
    5. Youngsun Kwon, 2002. "Rent‐Commuting Cost Function Versus Rent‐Distance Function," Journal of Regional Science, Wiley Blackwell, vol. 42(4), pages 773-791.
    6. Kwon, Youngsun & Lee, Jungsub & Oh, Youngkyun, 2010. "Economic and policy implications of spectrum license fee payment methods," Telecommunications Policy, Elsevier, vol. 34(3), pages 175-184, April.
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    Cited by:

    1. Kwon, Youngsun & Park, Duk Kyu & Rhee, Hongjai, 2017. "Spectrum fragmentation: Causes, measures and applications," Telecommunications Policy, Elsevier, vol. 41(5), pages 447-459.
    2. Teklemariam, Mekuria Haile & Kwon, Youngsun, 2020. "Differentiating mobile broadband policies across diffusion stages: A panel data analysis," Telecommunications Policy, Elsevier, vol. 44(8).
    3. Kwon, Youngsun & Kwon, Joungwon, 2017. "An overview of Telecommunications Policy's 40-year research history: Text and bibliographic analyses," Telecommunications Policy, Elsevier, vol. 41(10), pages 878-890.
    4. Kwon, Youngsun & Kwon, Joungwon, 2017. "Telecommunications Policy: An evaluation of 40 years' research history," 28th European Regional ITS Conference, Passau 2017 169475, International Telecommunications Society (ITS).
    5. Котляров И.Д., 2015. "Отбор Партнера По Лицензионному Соглашению," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 51(2), pages 103-112, апрель.

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