Flexible spectrum license fee payment

Abstract

Traditionally, spectrum has been regarded as a scarce resource, so that a government levies license fees to collect economic rent from those who use the spectrum. Various kinds of methods have been utilized to assign the right to those who want the license. However, with regard to the payment methods of the license fees, an up-front lump sum payment method, which has often been criticized for some negative aspects it has, is dominantly used in most countries, and other methods are not considered carefully. In this paper, an introduction of alternative risk sharing methods will be discussed and the effect of these new methods on consumer price will be analyzed.