Link to the University of Pittsburgh Homepage
Link to the University Library System Homepage Link to the Contact Us Form

Spectrum Valuation: implications for sharing and secondary markets

Gomez, Marcela and Weiss, Martin B.H. and Lehr, William H. and McHenry, Giulia (2018) Spectrum Valuation: implications for sharing and secondary markets. In: Telecommunications Policy Research Conference, 21-22 Sept 2018, Washington DC.

Download (315kB) | Preview


How much is electromagnetic spectrum worth? Appropriate metrics and methodologies for valuing spectrum help policymakers, network operators, service providers, and end-users in planning wireless-related investment and in ensuring that spectrum resources are used efficiently. Secondary markets have often served to provide publicly observable, market-based valuation metrics, but in the case of spectrum, these are under-developed and segmented, limiting the availability and comparability of market transactions as indicators of spectrum value. Furthermore, the continued growth in wireless services and networks of all types and further advances in wireless technologies enabling more dynamic and granular spectrum sharing are transforming the supply and demand conditions for RF spectrum. Today, the most common metric for valuing spectrum resources is $/MHz-POP, derived from dividing the value of a spectrum transaction by the total population in the coverage area of the license times the bandwidth (in MHz). Traditionally, spectrum value has been observed in spectrum auctions, M&A transactions involving the transfer of spectrum usage rights, or from infrequent secondary market activity. This was a viable approach when the fungibility of spectrum resources was limited by technical, market, and regulatory factors that constrained the commodification of highly differentiated spectrum resources and limited the potential for dynamically reallocating, substituting and transferring spectrum rights via markets. With increased opportunities for spectrum sharing, the transition to 5G, smaller cell architectures, and the emergence of IoT, new spectrum usage patterns are arising and enabling more granular, multi-dimensional, virtualized spectrum management (in terms of frequency, location, time, etc.). In a world of increasing spectrum sharing, dynamic spectrum access, and commercial applications of higher frequencies for wireless service, $/MHz-POP may be an increasingly noisy indicator of spectrum value.

In this paper, we consider how changing technology, markets and policy are enabling the commoditization of spectrum resources and explore what that implies for traditional spectrum value metrics that are used to project auction proceeds and value spectrum transactions.


Social Networking:
Share |


Item Type: Conference or Workshop Item (Paper)
Status: Published
CreatorsEmailPitt UsernameORCID
Gomez, Marcelammg62@pitt.eduMMG620000-0002-7161-9359
Weiss, Martin B.H.mbw@pitt.eduMBW
Lehr, William H.
McHenry, Giulia
Date: 21 September 2018
Event Title: Telecommunications Policy Research Conference
Event Dates: 21-22 Sept 2018
Event Type: Conference
Schools and Programs: School of Computing and Information > Telecommunications
Refereed: No
Date Deposited: 01 Oct 2018 14:43
Last Modified: 01 Oct 2018 14:43


Monthly Views for the past 3 years

Plum Analytics

Actions (login required)

View Item View Item