Principles of Spectrum Sharing: Understanding the Value of Shared Spectrum

As new spectrum based services come online, the demand for spectrum has increased significantly. At the same time, greenfield spectrum to meet these needs is becoming more scarce, and clearing government and other incumbent users from currently-allocated spectrum has become more challenging. For policymakers who have long sought to allocate spectrum to the most valuable uses, shared spectrum is an increasingly important tool for getting the most benefit from limited spectrum resources and maximizing both public and private returns. Our Principle of Spectrum Sharing suggests the rights to use spectrum should be granted based on a value-maximizing principle, where the chosen set of rights maximizes the net aggregate value of spectrum. Policymakers should avoid a focus on auction revenues as a proxy for assessing a spectrum’s aggregate economic and social value and should, instead, give careful attention to all the benefits and costs and then the set of rights—disaggregated or exclusive—of a shared licensing versus an exclusive licensing regime. Both regimes are complementary strategies to make more 5G spectrum available in the US, and the choice between them should be based on complete value and cost estimates. [This report was prepared for Spectrum for the Future and Charter Communications.]