Verizon Wireless and AT&T tend to pay more for the...
Verizon Wireless and AT&T tend to pay more for the spectrum licenses they buy, and flexible use licenses are “significantly more valuable” than those with a more restricted use, wrote Scott Wallsten, Technology Policy Institute vice president of research. His…
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paper is titled “Is There Really a Spectrum Crisis? Quantifying the Factors Affecting Spectrum License Value.” Wallsten analyzed the more than 69,000 licenses sold by the FCC since 1996. Larger geographic licenses generally sell for less per MHz/POP and that “contrary to conventional wisdom, more bandwidth is not correlated with higher values,” the paper said (http://bit.ly/10K0NHt) “All else equal, license prices increased steadily since about 2007, suggesting that demand for wireless services has been outpacing improvements in technological efficiency,” Wallsten concluded. “Whether or not spectrum values justify the moniker ‘crisis,’ the results emphasize the economic costs of artificially restricting the supply or use of spectrum, the complex interplay of factors that affect spectrum license value, and the importance of making long-term credible regulatory commitments."