An aspect of spectrum reform receiving increasing attention is the introduction of secondary markets for spectrum in order to enable more flexibility to reassign unused and underused spectrum to users that will use it more efficiently. This paper proposes to focus on the policy issues relating to the development of well‐functioning secondary markets for spectrum.
The paper reviews developments in the debate over secondary markets for spectrum. It draws together key elements from the academic literature, various government and government‐commissioned reports, and the practical experience of the few countries that have already introduced spectrum trading. There is considerable focus on concerns and potential costs relating to the introduction of spectrum trading and liberalisation. This has a constructive aim – to draw attention to the need to address such concerns in order to facilitate the development of spectrum trading.
While there is a persuasive case for spectrum trading, countries have been slow to introduce it because of a number of concerns. This paper identifies these concerns and the regulatory framework/policies needed to address them.
The paper distils the policy issues in the debate over spectrum trading and identifies the role that regulators will need to play in the introduction, facilitation and regulation of secondary markets for spectrum.
