Reallocating the 700 MHz Band: Should We Do it?

19 Pages Posted: 25 Nov 2014

See all articles by Juan Delgado

Juan Delgado

GAMES Economics; Universidad Carlos III de Madrid - Economics Dpt.

Date Written: April 25, 2014

Abstract

The proposal to evaluate the reallocation of the 700 MHz spectrum band in Europe, Africa and the Middle East from broadcasting services to mobile communications, presented during the last World Radiocommunication Conference in 2012, aimed to respond to the increasing demand for mobile broadband and the need to harmonize spectrum use across the world. The final decision is still subject to subsequent analysis and future potential adoption by national governments and the European Union. As this paper shows, this decision requires a careful analysis since, first, the amount of spectrum required for mobile broadband and, most importantly, the timing of the demand are uncertain and, second, the reallocation is not without costs since the 700 MHz band is currently being used in several countries for digital terrestrial television and other services. Assigning too much spectrum to mobile broadband too early at a high cost would lead to an inefficient outcome. A truly efficient allocation of the spectrum would require a more accurate picture of the current use, the exploration of alternative policy and technology options and the promotion of secondary markets for spectrum trading.

Keywords: Spectrum policy, telecommunications, DTT, mobile communications, digital dividend

JEL Classification: D4, L51, L82, L96, L98

Suggested Citation

Delgado, Juan, Reallocating the 700 MHz Band: Should We Do it? (April 25, 2014). IESE Business School Working Paper No. OP-259-E, Available at SSRN: https://ssrn.com/abstract=2530092 or http://dx.doi.org/10.2139/ssrn.2530092

Juan Delgado (Contact Author)

GAMES Economics ( email )

Calle Manzana 7
Madrid, 28015
Spain

HOME PAGE: http://https://gamesecon.com/juan-delgado/

Universidad Carlos III de Madrid - Economics Dpt. ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

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