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"Modified Lease Auction and Relocation---Proposal of a New System for Efficient Allocation of Radio-Spectrum Resources," Chap.III, Sangin Park (ed), Strategies and Policies in Digital Convergence, Idea Group Reference, Hershey, PA, U.S.A., and London, U.K., 2007, pp.26-49. An early version of this paper was included in the ITME Discussion Paper Series, No. 108, Information Technology and the Market Economy Project, Faculty of Economics, University of Tokyo, April 2003. A shortened version was included in Osaka-Gakuin Review of Economics, vol.19, No.2, December 2005, pp.89-126. Outline presented at the 14th Biennial Conference, International Telecommunications Society, Seoul, Korea, August 18-21, 2002, and at the International Conference on Convergence in Communications Industries, Warwick University, U.K., November 2-4, 2002.

• [Abstract]
• [Keywords]
• [Presentation Outline]
• [Publisher]
• [Fulltext]
• [Misc]

[Abstract]

This paper proposes a system by means of which the utilization of radio spectrum may be improved from extreme inefficiency at present to equilibrium and efficiency in the future.  It introduces a system which takes advantage of market mechanism with regard to spectrum assignment as distinct from spectrum allocation.  It is composed of two parts.  The first part proposes a system called “modified lease auction (MLA),” in which the government leases (rents) it competitively to business and public users.  To protect incumbents from excessive risk of losing spectrum rights, it proposes a number of ways including a provision of insurance.  The second part considers the transition from the current system to MLA.  It proposes a process in which the spectrum price be increased gradually from the current zero level to the target equilibrium level.  Further, in order to reconcile to oppositions by incumbents to MLA, a scheme is proposed for compensating income to incumbents without hurting the incentive to save spectrum.

[Keywords]

radio, radio spectrum, radio frequencies, spectrum resources, shortage of spectrum, spectrum license, spectrum allocation, spectrum assignment, relocation of spectrum, auction, lease auction, spectrum usage fees

[Presentation Outline]

• [PDF: 92KB] [PPT: 307KB] Earlier version at IST Conference, 8/18/02.
• [PDF: 90KB] [PPT: 281KB] Earlier version at a Conference, Warwick U., 11/3/02.

[Publisher]

Idea Group Reference, Hershey, PA, USA, and London, UK

[Fulltext]

• [PDF: 131KB] [DOC: 551KB] Draft: 5/17/03.
• [PDF: 96KB] [DOC: 293KB] Earlier version at a Conference, Warwick U., 11/3/02.

[Misc]

• [PDF: KB] (UC)

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