Economics of Spectrum

The management of spectrum has been undergoing a substantial evolution – with rise of different thoughts of its use – and by extension, how spectrum should be regulated. Increasingly, both industry and governments are seeing spectrum in economic terms, as an input to the production of communication services.


When a particular allocation of a spectrum resource maximises surplus – it means that the allocation results in efficiency. In essence the allocation maximises benefit to all members of society.


The current practise across the world is that it is generally efficient to make use of “market” to allocate spectrum. Making use of the “markets” or the use of a regulator who makes use of methods of allocation that would copy competitive markets in making allocation decisions. The ideas of supply and demand and market competition are all excellent principles to model the various services that might make use of the spectrum. In turn, they give guidance on what should be done and enhance understanding of policy decisions.


Not all spectrum lends itself to the “market”. Occasionally there is a need to provide spectrum for common use – without interference protection or with equipment capacity to avoid other uses. In essence, there is spectrum for all users and applications when “market” and spectrum commons are aggregated.


Mappiah have skilled telecom experts and economists; that have routinely undertaken consulting engagements to several governments and agencies globally.


Our consulting engagements covers:

  • Spectrum Pricing and Spectrum Economics
  • Spectrum Pricing & Valuation
  • Spectrum Auction and Competitive Award Support
  • Spectrum Valuation Analysis Tool
  • Spectrum Commons
  • Spectrum Sustainability
  • Technology Migration Roadmap
  • ICT Policy and Broadband Strategy

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