Spectrum for Wireless Telecom Service - Models / Valuation Approaches

Abstract

The proliferation of wireless telecom services (mobile and broadband) act as catalyst for the economic development of a country. The exponential growth in wireless telecom services has resulted in excessive demand for the spectrum which has direct bearing on the price of spectrum as input. The spectrum price plays very critical role in proliferation of wireless telecom services and thereby accelerates the development and growth of the national economy. The valuation of spectrum is significant matter for different stakeholders. The purpose of this reference paper is to apprise with various spectrum valuation approaches in vogue and has been divided into four parts: I- Introduction, IINeed for Valuation of Spectrum, III- Various Valuation Approaches- Opportunity Cost Models (i) Producer Surplus Approach (ii) Production Function Approach, Econometric Approaches (a) Single Variable Correlation Model (b) Multiple Variables Regression Model, Revenue Surplus Model, Economic Efficiency Approach, Technical Efficiency Approach, Achieved Price In Last Auction, Indexation Of Previous Auction Determined Price, International Benchmarking of Spectrum Price and Secondary Market Trading / Resale Price Of Spectrum, and IV- Conclusion