Practical tools described below used by regulators to reallocate/refarm spectrum to Mobile and IMT Advanced Services demonstrate the various options available.
- Compensation for licensees or compensating the clients of the licensees, for short term refarming processes. If the refarming has to be completed in a short time frame, consideration may be given to the use of financial compensation to the existing users. This raises the issue of who will ultimately pay for this compensation. There are a number of options:
- The new entrant pays for the migration. A compensation arrangement is made between the incumbent user and the new entrant, usually with the assistance of the administration.
- The administration pays for refarming. Compensation for refarming to be paid directly from federal tax receipts or from the income derived from licence fees.
- A national refarming fund is established. The national spectrum management authority administers a fund created either from the payments of new operators, from licence fees or from the state budget. This fund could be then used for paying compensations for network redeployment, financial incentives to accelerate refarming processes, etc.