The value of spectrum and the impact of the breakthrough for mobile data: The case of India, Sweden and Thailand
AbstractThis paper presents an analysis of the marginal value of spectrum with a focus on mobile broadband and illustrated by three country cases: India, Sweden and Thailand. The paper use an engineering valuation approach, which refers to savings that can be achieved by acquiring appropriate amount of spectrum rather than to deploy additional sites, to estimate the marginal value of spectrum. It is complemented with a discounted cash flow valuation (DCF) in order to estimate the net present value of spectrum. Valuation of spectrum is a complex issue given that the value is depending upon the availability of spectrum, national spectrum regulation, competitive situation on the market and expectations about the growth of the mobile business. The paper is addressing three research questions: 1) What is the engineering value of spectrum in two country cases, 2) what is the DCF value of 3G spectrum in Thailand, and 3) what do the paid levels at spectrum auctions imply for the marginal value of spectrum. The methodology applied to calculate the engineering value is based on a comparison of different network deployment options using different amounts of spectrum. As spectrum and sites are substitutes it enables us to calculate how many additional sites that are required in order to compensate for an incremental allocation of spectrum. Moreover, the paper compare estimates of the marginal value of spectrum with prices paid at a number of spectrum auctions presented as the value per MHz per population. The contribution of the paper is the development of an approach and estimates of the marginal value for spectrum which could be of interest for regulators when setting reserve prices on spectrum. It could also be an input to corporate spectrum strategies and a contribution to the development of valuation approaches on spectrum. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Telecommunications Society (ITS) in its series 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All with number 72479.
Date of creation: 2012
Date of revision:
Contact details of provider:
Web page: http://www.itsworld.org/
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.