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http://dx.doi.org/10.5515/KJKIEES.2019.30.5.356

Estimating the Economic Value of Radio Spectrum for Trunked Radio System  

Byun, Hee Sub (Dept. of Finance, College of Business, Hallym University)
Yeon, Kwon-Hum (Sejong Economic Research Institute on Technology)
Kim, Yongkyu (Division of Economics, College of Business and Economics, Hanyang University ERICA Campus)
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Abstract
The Ministry of Science and ICT recently announced its policy direction that involves charging the economic value of radio spectrum for promoting its efficient usage. According to the policy, there will be much efforts to estimate the economic values of various usages of radio spectrum. In this study, the economic value of radio spectrum is estimated for trunked radio system(TRS) by employing the least cost alternative methodology. The proposed methodology estimates the value of radio spectrum according to the cost of an alternative that can be employed for providing the same service. The value of radio spectrum for TRS was determined on the basis of the cost associated with the provision of TRS through the LTE network, wherein the value of radio spectrum for TRS comprises the LTE network cost, capital expenditure for the LTE service, subsidy for the LTE handset, and compensation cost for migration. Results obtained from this study can aid in calculating the economic values of radio spectra for other services and applications.
Keywords
Trunked Radio System; Economic Value of Spectrum; Least Cost Alternative Approach; Administrative Incentive Pricing;
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