Economic methods for radio spectrum assignment

The radio spectrum is a vital, but limited, natural resource subject to growing demand. Demand for frequencies is outstripping the pace of technological change in expanding the boundaries of the “usable” spectrum. The radio spectrum is of increasing significance for the development of the economy, It is important that it is managed well. This paper describes the technico-economic characteristics of the radio spectrum, how it is currently managed in the different countries, and outlines possible changes to meet future demands. Moreover, we present how new legislations may introduce a new pricing system with “incentive fee formulas”. The “incentive fee formulas” could encourage users to choose between different types of service operating in different bands of spectrum efficiency or even to consider alternative means of communication