Radio Spectrum Valuation by Using Censored Regression Method

Settapong Malisuwan, Noppadol Tiamnara, Nattakit Suriyakrai

National Broadcasting and Telecommunications Commission (NBTC), Bangkok, Thailand.

DOI: 10.4236/ajibm.2015.511065                

Abstract

Currently, the mobile markets in every country all around the world have been developing rapidly. The adoption of 3G and 4G services will greatly benefit the economy. Consumers will receive fast and quality telecommunication system and their quality of life will improve. Such development will be beneficial to the production of goods and service in countries raising overall competitiveness both domestically and internationally. Radio spectrum is scarce and invaluable telecommunication resource. Spectrum auction should determine spectrum value as consistent to its actual value. In order to ensure that spectrum is efficiently assigned, spectrum is priced to reflect the value it can add to help promote economic and technical efficiency with users who have bid for it. Putting a price on spectrum not only ensures spectrum management efficiency, but also can add revenue for the government which will in turn cover the cost of spectrum. This paper presents a radio spectrum valuation method by using censored regression method. The contributions in this paper could assist telecom policy makers to gain more understanding in development of radio spectrum valuation.

Keywords

Radio Spectrum, Valuation, Censored Regression, Estimation

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Cramton, P. (2002) Spectrum Auctions.
[2]	Madden, G., Saglam, I. and Morey, A. (2010) Auction Design and the Success of National 3G Spectrum Auctions. TüSIAD-Koç University Economic Research Forum Working Paper Series.
[3]	Van Bruwaene, K. (2003) Estimating the Value of Spectrum. EBU Technical Review.
[4]	Klemperer, P. (2002) What Really Matters in Auction Design. The Journal of Economic Perspectives, 16, 169-189. http://dx.doi.org/10.1257/0895330027166
[5]	Cave, M.E., Majumdar, S.K. and Vogelsang, I. (2003) Handbook of Telecommunications Economics. Info, 5, 46-46.
[6]	Cramton, P. (2006) Simultaneous Ascending Auctions. Wiley Encyclopedia of Operations Research and Management Science.
[7]	Alden, J. (2012) Exploring the Value and Economic Valuation of Spectrum. International Telecommunication Union, Geneva.
[8]	Dippon, C.M. (2009) Regulatory Policy Goals and Spectrum Auction Design: Lessons from the Canadian AWS Auction. NERA Economic Consulting, Statement.
[9]	Bohlin, E., Madden, G. and Morey, A. (2010) An Econometric Analysis of 3G Auction Spectrum Valuations.