The increase in spectrum demand, which has occurred internationally in the last 10-15 years as a consequence of booming wireless communications, has placed considerable pressure on traditional regulatory arrangements for spectrum access and use. Regulators, especially in industrial countries, have taken a number of steps of remedial policy vis-`a-vis these difficulties, by increasing the share of spectrum made available for commercial use as well as by injecting some flexibility into command-and-control regulation. These are, however, steps of a temporary, palliative nature and do not make for a wider spectrum management reform. Starting from a discussion of the limitations of command-and-control regulation, this paper deals with the two main, alternative approaches which have been proposed: a (Coasian) market regime, and a commons regime. After taking sides in favour of the market regime, consideration is given to some implementation issues, and to a regulatory formula—called administrative incentive pricing—which could help ensure a smooth transition from command-and-control to market arrangements.

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Paper provided by Macerata University, Department of Studies on Economic Development (DiSSE) in its series Working Papers with number 07-2007.

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Date of creation: Apr 2007
Date of revision: Nov 2008
Handle: RePEc:mcr:wpaper:wpaper00007

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Keywords: Spectrum management; Telecommunications policy; Administrative incentive pricing; Market mechanisms;

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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1. Hazlett, Thomas W, 1998. "Spectrum Flash Dance: Eli Noam's Proposal for "Open Access" to Radio Waves," Journal of Law & Economics, University of Chicago Press, vol. 41(2), pages 805-20, October.
2. Jérome Adda & Marco Ottaviani, 2005. "The transition to digital television," Economic Policy, CEPR, CES, MSH, vol. 20(41), pages 160-209, 01. [Downloadable!] (restricted)

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