Analysis of Radio Spectrum Charges based on Economic Value

주파수의 경제적 가치를 고려한 할당대가 산정기준 분석

  • Jang, Hee-Seon (Div. of Business Administration, Pyeongtaek University) ;
  • Yeo, Jae-Hyun (Div. of Communications & Broadcasting Policy, Korea Information Society Development Institute) ;
  • Lee, Kwang-Hee (Div. of Technology Strategy, Electronics and Telecommunicaitons Research Institute) ;
  • Choi, Ki-Seok (School of Industrial & Management Engineering, Hankuk University of Foreign Studies)
  • 장희선 (평택대학교 경상학부) ;
  • 여재현 (정보통신정책연구원 통신방송정책연구실) ;
  • 이광희 (한국전자통신연구원 기술전략연구부) ;
  • 최기석 (한국외국어대학교 산업경영공학부)
  • Published : 2008.06.30

Abstract

The determination of spectrum charges for the operators is a main issue to efficiently manage the limited radio spectrum resources. In this paper, we propose a model to compute the optimal charges for radio spectrum usage. The objective is to determine that will maximize the spectrum charges, and decision variables of ratios for actual or estimated revenues are considered. The spectrum charges are maximized under satisfying the least profit for operators based on Log-Linear demand function. The parameters of actual sales and minimum profit of operators are analyzed to make an efficient management for radio spectrum. The results show that the spectrum charges increase as the actual sales increase, but it decrease as the required minimum profit of operator increases. It is also observed that the government should increase the ratio for estimated sales if anticipating the poor market in the future, otherwise they should increase the ratio for actual sales to maximize the spectrum charges.

Keywords

References

  1. Bykowsky,M. (2003), A SecondaryMarket for the Trading of Spectrum : Promoting Market Liquidity, Telecommunications Policy, 27, 533-541 https://doi.org/10.1016/S0308-5961(03)00046-6
  2. Falch, M. and Tadayoni R. (2004), Economic versus Technical Approaches to Frequency Management, Telecommunications Policy, 28, 197-211 https://doi.org/10.1016/j.telpol.2003.12.007
  3. Indepen, Aegis System,Warwick Business School (2004), An Economic Study to Review Spectrum Pricing
  4. ITU-R SM2012-1 (2000), Economic Aspects of Spectrum Management
  5. Jang, Hee-Seon, Han, Seong-Su, Yeo, Jae-Hyun, and Choi, Seong-Ho (2005), Frequency Demand Forecasting Model for Multimedia Wireless Services, IE Interfaces, 18(3), 333-342
  6. Kang, Imho, and Yoon, Kiho(2006), A Quantitative Approach to the Optimal Structure of 3G Mobile Telecommunications Spectrum Charges, Research Journal of Informations and Communications, 13(1), 27-47
  7. Lenos, Trigeorgis (1996), Real Options-Managerial Flexibility and Strategy in Resources Allocation, The MIT Press
  8. NERA (2004), GSM Guard Bands Economic Impact Study
  9. Peter Cramton (2002), Spectrum Auctions(Handbook of Telecommunications Economics), ELSEVIER
  10. Sweet, R., Viehoff, I., Linardatos, D., and Kalouptsidis, N. (2002), Marginal Value-based Pricing of Additional Spectrum Assigned to Cellular Telephony Operators, Information Economics and Policy, 14, 371-384 https://doi.org/10.1016/S0167-6245(02)00047-1
  11. Taha, H-A. (2000), Operations Research, Macmillian
  12. Yu ,H-C, Lee, Z-Y, and Lee H-Y. (2004), Revising Taiwan's Frequency Usage Fee Regulation, Telecommunications Policy, 28, 679-695 https://doi.org/10.1016/j.telpol.2004.05.010
  13. Korea Radio Promotion Association, RAPA. (2007), Radio Technology, http://www.rapa.or.kr
  14. Radio Regulation Act, RRA. (2007), Ministry of Knowledge and Economy(old Ministry of Information and Communication), http:// www.mke.go.kr (http://www.mic.go.kr)