A Framework for Determining the Optimal Mix of Spectrum Management Regimes

This paper pursues three goals. It first discusses why a mix of exclusive rights and open access regimes is the norm in many areas of resource allocation. Arguing that such coexistence can also be expected in spectrum, the paper identifies the determinants of the optimal mix of spectrum management regimes. Second, the paper discusses and illustrates ways of measuring the opportunity costs of spectrum for licensed and unlicensed uses. We suggest that the curvature of spectrum value curve can be used as a tool to assess the flexibility of spectrum management regimes. Third, seeing the optimal mix of spectrum in a dynamic manner, we provide a few thoughts on adaptive spectrum management regimes. Regulatory authorities would be well-advised to increase the use of methods to systematically evaluate the economic value of spectrum for unlicensed and licensed use. Moreover, it is useful to boost spectrum liberalization policies to enhance efficiency in spectrum use