Expediting Spectrum Repurposing Through Market Transactions
Phoenix Center Perspectives 18–08
8 Pages Posted: 10 Nov 2018
Date Written: October 12, 2018
In this perspective, we present an economic model of how to design sensibly a market-based repurposing using the concept of an expiring “transaction window.” Specifically, we consider a two-stage process whereby incumbent licensees are first granted a fixed period of time to sell, acquire, or repurpose their licenses (i.e., the transaction window). To ensure an expeditious repurposing, this transaction window expires at a known, fixed date, at which time licenses held by incumbents that are not participating in or eligible for providing the “new” service are, in effect, reclaimed, and these incumbents are provided compensation established by the Commission. These reclaimed licenses are then assigned to those licensees in the band eligible for and interested in providing the services for which the spectrum is being repurposed.
Keywords: Spectrum, Transaction Window, Wireless Telecommunications, Mobile Telecommunications
JEL Classification: L96
Suggested Citation: Suggested Citation