A Holistic View of Spectrum Value

A whitepaper by the Airwave Research Team

Steven Stravitz, a 30-year telecommunications industry veteran, along with the rest of the Airwave Research team, explores what makes spectrum valuable.

The paper begins by examining the concept of intrinsic value and how it applies to spectrum. It then categorizes spectrum assets based on frequency and market characteristics.

The remainder of the whitepaper discusses how each of the following factors contributes to the value of a spectrum asset:
• Physical characteristics: Explores the role of frequency, coverage, and capacity, highlighting how the characteristics of various bands affect spectrum utility.
• Regulatory requirements: Covers licensing, renewal rights, and compliance with FCC and NTIA guidelines impacting spectrum value. This includes discussion of coordination requirements and the Spectrum Screen.
• Ecosystem: Discusses compatibility with existing networks and devices, and the influence of 3GPP standards on spectrum adoption.
• Market concentration: Analyzes ownership distribution and market concentration metrics like HHI to assess competitive dynamics.
• Strategic advantages of owning more spectrum: Highlights the benefits of increased holdings, including greater capacity and market leverage.

All components of spectrum utility discussed in the paper are incorporated into the Airwave Research Valuation module, which you can get access to today. The Valuation module enables users to perform spectrum valuation by comparing auction and transaction data, with adjustments based on spectrum characteristics, including impairments, to reflect spectrum utility.