Spectrum Value

Analysis of Spectrum Valuation Elements for Local 5G Networks: Case Study of 3.5-GHz Band

“…Marja Matinmikko-Blue, Member, IEEE, Seppo Yrjölä, Veikko Seppänen, Petri Ahokangas, Heikki Hämmäinen, Member, IEEE, and Matti Latva-aho, Senior Member, IEEE T who value them the most [4], [8], [11]. The unlicensed commons approach has in its turn opened the market for basically an unlimited number of entrants to build and deploy wireless systems that follow regulator approved rules and conditions for sharing [12].…”

“…Finally, the design of the exact market-based mechanisms is challenging as there is not much data available to assist because spectrum trades occur quite seldom. Therefore, it is complicated to collect a sufficiently large dataset for valuation analysis to help in the design of market-based mechanisms [8].…”

“…Studies on engineering value ([5]- [7], [14], [36]- [39]) clearly highlight cost-centric views and are concerned with the saving in the total cost of ownership from the availability of additional spectrum. Economic value ( [8], [12], [14], [16], [37]- [38], [40]- [41]) has attracted most attention by scholars and provides a comprehensive approach that considers expected future profits from the use of services offered through spectrum. Economic value considering business profits and not only cost savings goes beyond the engineering value.…”

“…Engineering value considers the cost savings in the infrastructure that an operator can achieve by gaining access to additional spectrum [5]- [7]. Economic value has a wider perspective and considers the value arising from the services that are provided for use through the availability of the spectrum, in terms of the predicted future profits that can be earned by the services offered [8]. Strategic value of spectrum arises from a stakeholder's control of the market access through spectrum availability, because the expected market position of one stakeholder depends on spectrum assignments of the others [5].…”

“…The spectrum valuation approaches proposed in the research literature make inherent assumptions about the underlying spectrum allocation and assignment models. These have clearly evolved from administrative allocation towards market-based mechanisms and the unlicensed commons approach [4], [8]. Administrative allocation is typically concerned with rules that minimize harmful interference, without directly considering the economic benefits from the use of a spectrum band [9]- [10].…”