—At present day, due to the exponential demand for services such as mobile that requires spectrum, the demand of spectrum has become exceedingly high. Hence, regulators worldwide are faced with a big challenge to ensure sufficient spectrum supply to services that provide the most economic value. Therefore, studies on telecommunication service spectrum valuation have become increasingly more important than ever before. From literature review on the spectrum valuation studies from international experts, we can categorize the studies into two groups. The first values spectrum by opportunity cost approach, which compares the cost and revenue of bidders with and without spectrum. The second group of studies applies econometrics to data collected from past auctions in different countries as a guideline in spectrum valuation for studied country. It starts by using statistical technique to estimate regression model in order to find the relationship between actual auction prices in different countries and its determinants. Then, it forecasts the spectrum price for studied country by replacing the values of determinants in the equation. In practice, one might choose one or use both valuation methods in parallel as a cross-check. This paper will explore both groups of spectrum valuation methods.
—Spectrum auction, license, reserve price.
S. Malisuwan, N. Tiamnara, and N. Suriyakrai are with National Broadcasting and Telecommunications Commission Bangkok, Thailand (e-mail: email@example.com, firstname.lastname@example.org, email@example.com).
Cite: Settapong Malisuwan, Noppadol Tiamnara, and Nattakit Suriyakrai, "A Study of Spectrum Valuation Methods in Telecommunication Services," International Journal of Trade, Economics and Finance vol.6, no.4, pp. 241-246, 2015.