Evaluation of Spectrum Rights for Radio Broadcasting Operators

The paper explores the valuation of radio spectrum granted by the State to radio operators for radio program broadcasting. Radio spectrum may be one of the most tightly regulated resources of all time, since every wireless device, from mobile phones to traditional radio devices, depends on access to the radio frequency wireless spectrum. Due to the scarcity of radio spectrum, the available number of radio broadcasting licenses is limited, therefore the State usually offers the licenses through open tender procedures following several tendering options such as auctions and beauty contests. One of the most crucial factor in the licensing procedures, is the valuation of the offered spectrum. The valuation of the spectrum determines the amount of money that radio operators should pay to the State, in order to hold the spectrum license for a fixed period of time. In this paper a cost model for radio spectrum evaluation is applied in order to identify the most crucial parameters that affect the determination of the spectrum price. The dynamic structure of the model allows a sensitivity analysis study in relation to the assessment of the variation effect of several parameters to the determined spectrum price. The appropriate determination of the examined parameters allow the State to maximize the government revenues but most important to grant the spectrum with the most efficient way.