IDEAS home Printed from https://ideas.repec.org/p/zbw/itse19/205199.html
   My bibliography  Save this paper

Value of the spectrum for local mobile communication networks: Insights into awarding and pricing the 5G spectrum bands

Author

Listed:
  • Matinmikko-Blue, Marja
  • Yrjölä, Seppo
  • Ahokangas, Petri
  • Seppänen, Veikko
  • Hämmäinen, Heikki
  • Jurva, Risto

Abstract

Spectrum management decisions made by the regulators aim at maximizing the value of spectrum, its efficient utilization and benefits to the society. A major debate in spectrum management globally is currently focusing on 5G spectrum bands and their awards. In fact, several countries have recently made their first 5G spectrum awards decisions, which will have a long-term impact on the mobile communication market. This paper analyses recent 5G spectrum decisions from the spectrum valuation view point and discusses the emerging role of local 5G networks to serve the needs of different vertical sectors. Special attention is put on the awarding and pricing of 5G spectrum and recommendations are given on new pricing mechanisms that take into account the emergence of local 5G networks by different stakeholders. The results highlight the divergence in the spectrum management approaches that the regulators in different countries have taken where the first 5G spectrum decisions have continued to strengthen the mobile network operator (MNO) market dominance while the most recent planned decision aim at opening the mobile market to new local entry through local spectrum access rights.

Suggested Citation

  • Matinmikko-Blue, Marja & Yrjölä, Seppo & Ahokangas, Petri & Seppänen, Veikko & Hämmäinen, Heikki & Jurva, Risto, 2019. "Value of the spectrum for local mobile communication networks: Insights into awarding and pricing the 5G spectrum bands," 30th European Regional ITS Conference, Helsinki 2019 205199, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse19:205199
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/205199/1/Matinmikko-Blue-et-al.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter Cramton, 2013. "Spectrum Auction Design," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(2), pages 161-190, March.
    2. Wolfgang Ulaga & Andreas Eggert, 2005. "Relationship Value in Business Market: The Construct and its Dimension," Post-Print hal-00482539, HAL.
    3. Beltrán, Fernando & Massaro, Maria, 2018. "Spectrum management for 5G: assignment methods for spectrum sharing," 29th European Regional ITS Conference, Trento 2018 184932, International Telecommunications Society (ITS).
    4. El-Moghazi, Mohamed & Whalley, Jason & Irvine, James, 2017. "The Future of International Radio Regulations: Transformation Towards Sharing," 28th European Regional ITS Conference, Passau 2017 169457, International Telecommunications Society (ITS).
    5. Markendahl, Jan & Mäkitalo, Östen & Mölleryd, Bengt G. & Werding, Jan, 2010. "Mobile Broadband Expansion Calls for More Spectrum or Base Stations - Analysis of the Value of Spectrum and the Role of Spectrum Aggregation," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 26, International Telecommunications Society (ITS).
    6. Matinmikko, Marja & Latva-aho, Matti & Ahokangas, Petri & Seppänen, Veikko, 2018. "On regulations for 5G: Micro licensing for locally operated networks," Telecommunications Policy, Elsevier, vol. 42(8), pages 622-635.
    7. Marcus, J. Scott & Molnar, Gabor, 2017. "Network sharing and 5G in Europe: The potential benefits of using SDN or NFV," 28th European Regional ITS Conference, Passau 2017 169482, International Telecommunications Society (ITS).
    8. Anker, Peter, 2017. "From spectrum management to spectrum governance," Telecommunications Policy, Elsevier, vol. 41(5), pages 486-497.
    9. Kuroda, Toshifumi & Baquero Forero, Maria del Pilar, 2017. "The effects of spectrum allocation mechanisms on market outcomes: Auctions vs beauty contests," Telecommunications Policy, Elsevier, vol. 41(5), pages 341-354.
    10. Arnon Tonmukayakul & Martin Weiss, 2008. "A study of secondary spectrum use using agent-based computational economics," Netnomics, Springer, vol. 9(2), pages 125-151, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lehr, William & Queder, Fabian & Haucap, Justus, 2021. "5G: A new future for Mobile Network Operators, or not?," Telecommunications Policy, Elsevier, vol. 45(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matinmikko-Blue, Marja & Yrjölä, Seppo & Ahokangas, Petri & Hämmäinen, Heikki, 2021. "Analysis of 5G spectrum awarding decisions: How do different countries consider emerging local 5G networks?," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238039, International Telecommunications Society (ITS).
    2. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    3. Lähteenmäki, Jarno, 2021. "The evolution paths of neutral host businesses: Antecedents, strategies, and business models," Telecommunications Policy, Elsevier, vol. 45(10).
    4. Queder, Fabian & Lehr, William & Haucap, Justus, 2020. "5G and Mobile Broadband Disruption," ITS Conference, Online Event 2020 224872, International Telecommunications Society (ITS).
    5. Gisca, Oxana & Matinmikko-Blue, Marja & Ahokangas, Petri & Yrjölä, Seppo & Gordon, Jillian, 2022. "Legitimacy challenges of local private 5G and beyond networks in Europe," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265631, International Telecommunications Society (ITS).
    6. Markendahl, Jan & Beckman, Claes, 2022. "Can local 5G networks using local spectrum be used as platform for digitalization of industrial systems and services?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265657, International Telecommunications Society (ITS).
    7. Rod Mccoll & Yann Truong & Antonella La Rocca, 2019. "Service guarantees as a base for positioning in B2B," Post-Print hal-02326105, HAL.
    8. Mochon, Asuncion & Saez, Yago, 2017. "A review of radio spectrum combinatorial clock auctions," Telecommunications Policy, Elsevier, vol. 41(5), pages 303-324.
    9. Philippe Jehiel & Laurent Lamy, 2020. "On the Benefits of Set-Asides," Journal of the European Economic Association, European Economic Association, vol. 18(4), pages 1655-1696.
    10. Benedikt Bünz & Benjamin Lubin & Sven Seuken, 2022. "Designing Core-Selecting Payment Rules: A Computational Search Approach," Information Systems Research, INFORMS, vol. 33(4), pages 1157-1173, December.
    11. Aytek Erdil & Paul Klemperer, 2010. "A New Payment Rule for Core-Selecting Package Auctions," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 537-547, 04-05.
    12. Guo, Chiquan & Wang, Yong J. & Metcalf, Ashley, 2014. "How to calibrate conventional market-oriented organizational culture in 21st century production-centered firms? A customer relationship perspective," International Journal of Production Economics, Elsevier, vol. 156(C), pages 235-245.
    13. Beltrán, Fernando & Massaro, Maria, 2018. "Spectrum management for 5G: assignment methods for spectrum sharing," 29th European Regional ITS Conference, Trento 2018 184932, International Telecommunications Society (ITS).
    14. Estrella Alonso & Joaquín Sánchez-Soriano & Juan Tejada, 2020. "Mixed Mechanisms for Auctioning Ranked Items," Mathematics, MDPI, vol. 8(12), pages 1-26, December.
    15. Mölleryd, Bengt G. & Markendahl, Jan, 2014. "Analysis of spectrum auctions in India—An application of the opportunity cost approach to explain large variations in spectrum prices," Telecommunications Policy, Elsevier, vol. 38(3), pages 236-247.
    16. Lemstra, Wolter, 2018. "Leadership with 5G in Europe: Two contrasting images of the future, with policy and regulatory implications," Telecommunications Policy, Elsevier, vol. 42(8), pages 587-611.
    17. Faycal Bouhafs & Alessandro Raschellà & Michael Mackay & Frank den Hartog, 2022. "A Spectrum Management Platform Architecture to Enable a Sharing Economy in 6G," Future Internet, MDPI, vol. 14(11), pages 1-13, October.
    18. Oughton, Edward J. & Lehr, William & Katsaros, Konstantinos & Selinis, Ioannis & Bubley, Dean & Kusuma, Julius, 2021. "Revisiting Wireless Internet Connectivity: 5G vs Wi-Fi 6," Telecommunications Policy, Elsevier, vol. 45(5).
    19. Marsden, Richard & Ihle, Hans-Martin, 2018. "Mechanisms to incentivise shared-use of spectrum," Telecommunications Policy, Elsevier, vol. 42(4), pages 315-322.
    20. Andor Goetzendorff & Martin Bichler & Pasha Shabalin & Robert W. Day, 2015. "Compact Bid Languages and Core Pricing in Large Multi-item Auctions," Management Science, INFORMS, vol. 61(7), pages 1684-1703, July.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse19:205199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itseurope.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.