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Spectrum Management: Property Rights, Markets, and The Commons « Telecommunications and IT « Topics « Downloads
|Date posted||April 1, 2010|
|Categories||Telecommunications and IT, Working paper, Farber, David J., Faulhaber, Gerald R.|
Gerald Faulhaber and David Farberconsider alternatives to the current licensing regime for spectrum, which appears to lead to substantial inefficiencies in spectrum allocation.Specifically, they examine two property rights regimes and a commons regime.Theynote that economists have favored a market-based regime while engineers have favored a commons-based regime to promote new technologies. Mr. Faulhaber and Mr. Farbershow that thereis aproperty rights market-based regime that unleashes the power of the market andthe power of the new technologies to efficiently allocate spectrum, and that is likely to meet our needs for the near-term future. This regime resolves the presumed dichotomy between the market-based and the commons-based views, so that both objectives can be realized.The authorsalso outline a transition processfor achieving the desired regime outcome that is a "win-win" for all stakeholders, and that could be politically feasible. The change to a property rights regime is likely to lower the cost of spectrum substantially, in many cases to zero.Mr. Faulhaber and Mr. Farberassert that a commons model and a market model can co-exist, at least until spectrum becomes truly scarce.