Designing property rights for the operation of spectrum markets

The paper referenced considers various technical and economic difficulties in defining property right to spectrum trading. The authors recommend that:

  1. Where existing licences become tradable and subject to charge of use, rights should be established consistent with current uses; this will avoid conflicts of rights and permit parties to renegotiate rights when circumstances change;
  2. Easements should not usually be allowed, but rights should be allocated in ways which take account of the economic value, and interference potential, of new technologies such as UWB;
  3. Licences should be perpetual;
  4. Vacant spectrum should be placed in the market place (subject to international agreements);
  5. A compulsory purchase power for spectrum should be confined to national security needs;
  6. Spectrum licensees should not pay a perpetual annual charge, nor any charge which discourages efficient trading.

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