The Impact of Obligations in Spectrum Value
Alarcon Lopez, Luis Guillermo
Radiofrequency spectrum is an essential asset for mobile network operators. Governments set its value to organize competitive frequency auctions and define recurrent payments, such as taxes and right of use. This publication sustains that governments should value radio frequency spectrum as a function of the intended frequency use policy and corresponding obligations. A mathematical formula is proposed to articulate, quantitatively, the relationship between spectrum value and regulatory obligations, including promoting new market entrants, conditioning of wholesale obligations, definition of coverage goals, and requirement to support public safety and first respondent services. This paper targets, in general, the telecommunication ministries, national regulatory authorities, and government entities that address the topic of valuing radio frequency spectrum.