{"id":22374,"date":"2025-10-29T11:48:36","date_gmt":"2025-10-29T11:48:36","guid":{"rendered":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/?p=22374"},"modified":"2025-10-29T11:48:36","modified_gmt":"2025-10-29T11:48:36","slug":"approaches-to-assigning-spectrum","status":"publish","type":"post","link":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/spectrum-management-and-licensing\/approaches-to-assigning-spectrum\/","title":{"rendered":"Approaches to assigning spectrum"},"content":{"rendered":"<div class=\"mph_background mph_column left\"><h3>Background<\/h3>\n<p>Licensed spectrum is necessary for mobile services to provide quality service and customer value. It facilitates the investments needed to deploy mobile networks widely.<\/p>\n<p>The licensing of spectrum bands for mobile services should follow international harmonisation, which delivers lower-cost devices and equipment through economies of scale. Exclusive licensing has been central to the success of mobile, and any spectrum-sharing mechanisms should be considered only as a complementary possibility.<\/p>\n<h3>Auctions<\/h3>\n<p>Auctions are an efficient way to assign spectrum when there is competition for scarce spectrum and when demand is expected to exceed supply. Careful planning is needed, as excessively high reserve prices may result in unsold spectrum or less investment.<\/p>\n<p>There are several auction designs to choose from, each with its own strengths and limitations. The best choice depends on market conditions and the objectives of governments and regulators, but above all, it is the conditions of the auction (reserve prices and obligations through terms and conditions) rather than the methodology that determines success.<\/p>\n<p>For governments, which set the wider<\/p>\n<p>policy objectives for spectrum, considerations could include:<\/p>\n<ul>\n<li>Maximum long-term value to the economy and society.<\/li>\n<li>Efficient technical implementation of<\/li>\n<li>Sufficient investment to roll out networks and new services.<\/li>\n<li>Adequate market<\/li>\n<li>A fair and transparent assignment<\/li>\n<\/ul>\n<p>For regulators, which are charged with ongoing spectrum management, the main challenge is balancing the objectives of efficient spectrum assignment and supporting competition in communications markets. Seeking to maximise auction revenues can have significant costs for society, especially the digital economy, if competition is undermined and network investment is limited.<\/p>\n<p>Low participation should also be a concern, especially in mature mobile markets. A wide variety of tools are available for regulators to address these issues, including the choice of auction format, determination of spectrum lots, spectrum caps and set-asides, bid information disclosure and reserve prices. However, these tools are often conflicting, and their effectiveness will depend on local market conditions.<\/p>\n<p>Administrative assignments, where no competitive bidding process is held, are most effective when market demand is lower. Like spectrum auctions, administrative assignments must be well-planned to succeed. The selection criteria and process must be clear, and the weight given to each objective should reflect its importance to society. The use of vague and subjective criteria, or a lack of transparency, increases the risk of favouritism and corruption as well as the potential for the outcome to be challenged in the courts. A trade-off may be needed between policy objectives and the licence fee. Even where the objective is clear, estimating the appropriate price can be challenging.<\/p>\n<p>Regulatory objectives that are sometimes considered part of an administrative assignment \u2013 a so-called \u201cbeauty contest\u201d \u2013 include coverage, service quality and a variety of social and economic goals.<\/p>\n<p>Administrative assignments carry the risk that successful applicants will be unable to fulfil their offers, particularly if market or technology forecasts prove inaccurate. Licensing authorities should set out in advance the penalties that will be imposed if commitments are not met.<\/p>\n<h3>Debate<\/h3>\n<p><em>Policy decisions have an impact on the quality of mobile services. How should governments decide which spectrum assignment approach to use?<\/em><\/p>\n<p>\n<\/div><br \/><div class=\"mph_background mph_column right\"><\/p>\n<h3>Industry position<\/h3>\n<p>Efficient spectrum assignment is necessary to realise the full economic and social value of mobile. Auctions are the main approach to assigning the right to use a particular spectrum band, but administrative assignments (beauty contests) can also be used where demand is expected to be lower than the supply of spectrum. Sometimes, a hybrid approach is used whereby the licensing authority selects a shortlist of bidders based on administrative criteria and then holds an auction to assign the licence.<\/p>\n<p>Auctions work best when there is excess demand for spectrum and they help select mobile operators most likely to use their spectrum assignment for the greatest benefit of society.<\/p>\n<p>Administrative assignments, on the other hand, may be suitable in areas where there is less demand for spectrum and may allow authorities to compare the range of policy objectives offered by candidates.<\/p>\n<p>Whichever approach is taken, it must be implemented with care. This includes identifying issues through public consultation and weighing the trade-offs of different design choices (noting the importance of efficient spectrum use and safeguarding competition). Sufficient time and transparency must be provided to allow potential candidates to make informed decisions.<\/p>\n<h3>Resources<\/h3>\n<p><a href=\"https:\/\/www.gsma.com\/connectivity-for-good\/spectrum\/wp-content\/uploads\/2022\/02\/Mobile-Spectrum-Licensing-Best-Practice.pdf\">Best Practice in Mobile Spectrum Licensing,<\/a> GSMA,<\/p>\n<p>2022 <a href=\"https:\/\/www.gsma.com\/connectivity-for-good\/spectrum\/wp-content\/uploads\/2021\/09\/Auction-Best-Practice.pdf\">Auction Best Practice, GSMA,<\/a> 2021<\/p>\n<p>\n<\/div><\/p>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","footnotes":""},"categories":[1146],"tags":[],"class_list":["post-22374","post","type-post","status-publish","format-standard","hentry","category-spectrum-management-and-licensing"],"featured_image_url":false,"_links":{"self":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/22374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/comments?post=22374"}],"version-history":[{"count":2,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/22374\/revisions"}],"predecessor-version":[{"id":22376,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/22374\/revisions\/22376"}],"wp:attachment":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/media?parent=22374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/categories?post=22374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/tags?post=22374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}