Incentives to spectrum trading

Radio spectrum is a valuable and scarce natural resource and the introduction of spectrum trading can optimize the use and improve the efficiency of this scarce resource. This paper gives a brief analysis of incentives to spectrum trading from both macro and micro perspectives, in which it focuses on the relationship between initial spectrum assignment processes and secondary spectrum trading. Furthermore, it is found that initial spectrum assignment approaches in combination with the frequency fee system have an influence on the potential to gain windfall profits in secondary spectrum trading market and then affect incentives to spectrum trading. Finally, on the basis of earlier research results, some recommendations about the development of China´s secondary spectrum market are put forward.