Spectrum Economics, Trading, Financing and Pricing in Liberalized Market
COURSE OVERVIEW:
The Radio Spectrum is a natural Resource that we use in our everyday life for communication, Research, telemetry, business and other wireless applications including Internet of Things (IoT), home automation, industrial control among other. Spectrum like any other natural resource can be traded in the open market through auctions, sale in secondary markets, and it is renewable. Spectrum is a major contributor to GDP in many countries around the world.
The demand for spectrum in many countries is extremely high and many investors are competing for a stake in the radio spectrum to roll out broadband and other bandwidth hungry systems including broadcasting. It is therefore critical that governments should come up with sound policies for investment in ICT that use wireless technologies. In particular the policies should address issues of spectrum pricing, efficient usage by operators, competition and interference free communication. Spectrum Policies in member states of ITU should therefore be attractive to investors such as IFC, World Bank and AfDB in line with WTO guidelines.
LEARNING OBJECTIVES:
This Course shall share with delegates strategies for economic uses of the Radio spectrum in an efficient manner taking into consideration market dynamics. The course shall explore ways and means for Regulators to balance between spectrum demand and supply and the prevailing bandwidth prices in different countries. The Course shall focus in challenges facing Regulators including Spectrum shortage, high demand for frequencies, quality of use, interference, non competitive practices by Significant Market Players (SMPs), competition or lack of it, availability of funds for investment, investment financing as well as spectrum Auctions and trading in secondary markets.
The course shall also explore World Trade Organization (WTO) Guidelines on Tariffs and Bandwidth Prices as well as financing opportunities for Spectrum based projects by the International Finance Corporation and African Development Bank (AfDB) and other financing options such as Joint Venture (JVs) Partnerships and Public Private
Partnerships (PPPs) among others. The course shall also explore how Spectrum is traded in the Stock Exchange around the world.
COURSE MODULES
Module 1: Spectrum as a Trade Commodity with Economic Value and Price:
This Module shall discuss the importance of Radio Spectrum and why it should be used efficiently, rationally and equitably for the benefit of the commons. The module explains ITU Guidelines for efficient spectrum use in particular ITU-R Recommendations governing use of Radio Spectrum and Orbit Resources without causing harmful interference to other radio stations. The Module also highlights the UN outer space treaty of 1967 on the use of satellites in the orbit. The Module looks into how the WTO and World Bank guidelines on Spectrum use and tariffs as well as licensing costs applicable in developing countries. The module explains the Net Profit Value (NPV) of Spectrum for investors and operators.
Module 2: Spectrum Regulatory Frameworks and Trading in a Competitive Market.
This Module looks at current regulatory frameworks are designed and how they impact on Spectrum trading and prices. The Module shall compare the regulated spectrum pricing model to the open market that follows demand and supply in a competitive environment. The Module shall look at ITU and WTO Guidelines concerning Licensing and Authorization to use Spectrum and Associated Tariffs. The Module shall highlight non competitive threats to spectrum access by Significant Market Players (SMPS) and look into ways and means of creating a level playing field for Spectrum Access. A cost benefit Analysis of the 6 GHz Band shall be showcased. An example of usage of FWA in 6GHz in Brazil shall be highlighted.
Module 3: Spectrum as a major Contributor to GDP and driver for Economic Growth.
This Module shall focus on the economical uses of the Radio spectrum in accelerating economic growth in developing countries. Case studies of Spectrum contribution in member states of ITU : USA, UK, New Zealand, Brazil , Egypt, and South Korea. The Module explains how Spectrum Auctions and Stock trading are conducted in some member states. Case Studies: Statistics of Revenue from Spectrum use: (a) MTN, Vodacom, Multichoice, SABC(b) Global Statistics of Spectrum Revenue: IFC, ITU. Statistics from ITU on Broadband Wireless contribution to GDP in different regions shall be illustrated.
Module 4: Spectrum Challenges: Scarcity, Interference, Hoarding, inefficient Spectrum use and Overpricing.
This Module looks at challenges experienced by NRAs and Operators in member states including but not limited to the following: Frequency Interference, Hoarding of Spectrum, inefficient usage, illegal use, over-pricing, use of non type approved equipment, not following international best practices and guidelines from ITU and other regional bodies such as EACO, CRASA, ECOWAS, ATU etc. The Module shall showcase innovative radio systems that use the spectrum efficiently and providing new services at lower cost such as cognitive radio systems (CRS) and Dynamic Spectrum Management Systems (DSMS) use of Automated Frequency Coordination (AFC)
Module 5: Case studies of spectrum trading in secondary markets, 5G/6G Auctions, 6GHz mid Band Auctions
This Module shall share with delegates case studies of spectrum trading from different countries: Spectrum Secondary trading : USA, FCC, UK-OFCOM, New Zealand, Spectrum Stocks trading in NYC, NASDAQ, London SE and JHB Stock Exchange.
Delivery Methods: Lectures: To provide theoretical and conceptual knowledge on Spectrum and Orbit Resources
Case Studies: Analysis of successful Spectrum Auctions and trading around the world
Group Discussions: To share insights and strategies across different sectors.
Action Plans and Projects: Participants will develop, and present new projects proposals with budgets that use radio Spectrum Resources and present to the whole class.