Mobile broadband expansion calls for more spectrum or more base stations: analysis of the value of spectrum and the role of spectrum aggregation
Jan Markendahl and
Bengt G. MÃ¶lleryd
International Journal of Management and Network Economics, 2011, vol. 2, issue 2, 115-134
This paper analyses the marginal value of spectrum which includes engineering and strategic value. The analysis of the engineering value shows that operators that are able to obtain more spectrum than their competitors, and pursue network sharing and spectrum aggregation have a competitive advantage as they have the lowest production cost, highest margin and highest capacity when usage takes off. The analysis of the strategic value shows that the level of offered data rates is pivotal for operators' marketing of mobile broadband services and that network sharing in combination with spectrum aggregation has a positive impact on the strategic value. Altogether, the willingness to pay for spectrum in recent auctions has been lower than the estimated marginal value in this analysis. However, it is likely to increase when a broad range of smart mobile devices and mobile broadband are ubiquitously used as this will put unprecedented pressure on mobile networks increasing the demand for spectrum.
Keywords: mobile communications; spectrum valuation; network deployment; network capacity; network cost; carrier aggregation; band aggregation; market position; spectrum aggregation; mobile devices; mobile broadband; mobile networks; smart devices. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmnec:v:2:y:2011:i:2:p:115-134
Access Statistics for this article
More articles in International Journal of Management and Network Economics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().