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[Satellite TODAY Insider 07-28-11] Satellite operators and regulators are finding it more difficult to determine the value of mobile broadband spectrum as changes in technology and the increasing availability of spectrum creates uncertainty regarding future spectrum awards and auction reserve prices, according to an Analysys Mason report issued July 27.
The report says that operators now have a much wider range of options on spectrum, including: the IMT expansion band at 2.6GHz; re-farmed spectrum in the 850 MHz, 900 MHz and 1800MHz bands; and digital dividend spectrum. Analysys Mason Principal Analyst and Spectrum Research Program Director Terry Norman believes that these choices, along with spectrum capping at auctions and increasing network sharing between operators, have contributed to a more complicated decision-making process.
“The value of spectrum has never been particularly easy to determine. It depends on many variables that can be described collectively as the technical, commercial and strategic factors,” Norman told Satellite TODAY Insider. “10 years ago, valuing spectrum was more straightforward, compared with today. A single lot of spectrum became available at a particular frequency and an operator estimated the value and knowing its budget entered into the auction. Furthermore, cognitive technologies designed to exploit white-space spectrum could make the notion that any user of spectrum has exclusive access to the spectrum redundant.”
Operators in a number of countries have paid a range of prices for similar spectrum; however, the amount that operators have expressed that they are willing to pay varies depending on market. To examine this range of issues and challenges, Analysys Mason launched its Spectrum Research Program earlier this year to focus on evaluating spectrum, the impact of technology on auctions and the future concept of a license to exclusive transmission. Norman said the program also would provide a tracker of past auctions, including prices paid per MHz per person, auction winners and details of forthcoming auctions.
“With greater choice of spectrum, innovations like white space and the advance of technology may undermine the concept that spectrum is an asset, so the difficulty in valuing spectrum is only set to get worse,” said Norman.
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