New Study Finds Benefits of Transferring C-Band Spectrum From Satellite To Terrestrial Wireless Grossly Exaggerated

Satellite operators challenge GSMA studies on economic benefits of C-band for IMT. Read more here.

Assessing the Value of Spectrum

ESOA has been working with expert economic consultants to develop a sound methodology for assessing the value of spectrum.

In order to assess spectrum, it’s necessary to effectively capture the benefits it brings to different stakeholders, as well as the extent to which these benefits can be provided by other technologies. The following steps would be required to arrive at an assessment of the value of spectrum:

1. Identify the market players:

This first step aims to map the range of stakeholders involved in the relevant band’s ecosystem, namely:

  • Identify the service providers (e.g. satellite operators)
  • Identify the users (e.g. firms, public authorities, international organisations, NGOs)
  • Identify the sectors (e.g. oil & gas, financial, education) and regions in which these users and providers operate

2. Identify the products and services:

This step aims to understand the variety of products and services that use the spectrum. Specifically it aims to:

  • Identify the products and services offered by service providers (e.g. access to networks to VSAT equipment)
  • Identify the activities of of spectrum users (e.g. tele-medicine, oil and gas extraction, financial trading platforms)

3. Assess value:

This is central to the valuation and involves the following sub-steps:

  • Private value, including both the prices paid by users to service providers, as well as benefits derived by users from activities relying on the spectrum
  • Social value, which includes broader benefits to society resulting from the activities the spectrum enables (e.g. humanitarian aid, tax revenues from the oil and gas sector)
  • Discount value, to determine the value which can be directly attributed to the spectrum in use: where an activity is only possible with a particular frequency band, the value of that band to the particular user will be equal to the value generated by this activity. Where that band is needed only for an aspect of the activity (e.g. due to extra coverage or reliability) or can be substituted with a different technology, the value of the activity should be discounted.

4. Aggregation and forecast:

Finally, the value to different users and service providers would need to be aggregated and forecast. This can be done for specific sectors or geographies.

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