Page 89 - ITUJournal Future and evolving technologies Volume 2 (2021), Issue 1

ITU Journal on Future and Evolving Technologies, Volume 2 (2021), Issue 1

yintk — economic impact of spectrum use in the congested parts of the spectrum achieving
k-th scenario, as the sum of the impacts of the interference-free operation of radio networks
production of the n-th spectrum user for the calls for highly qualified technical staff and
end user; the implementation of special technical
yextk — economic impact of spectrum use in the measures requiring specialized hardware and
k-th scenario, as the sum of the impacts of the software. On the basis of these
production of the n-th spectrum user for considerations, it is necessary to examine the

inter-sector use of output Yk = yintk + yextk — relationship opn =f(snk). This item may also
Overall contribution of use of the resource to take into account an annual spectrum fee if
the country’s GDP for the k-th allocation such a fee is levied on users in the band in
scenario. Given the complexity of the inter- question;
sector relationships and technological tcn — transaction costs for the n-th spectrum user
processes involved in the use of a resource, of in the k-th scenario. These can include the
direct and indirect assessments of a license and spectrum/auction fees, as well as
resource’s economic impact and of the reallocation costs;
different manifestations thereof (e.g. the ecn — externality costs of the n-th spectrum user in
creation of new jobs), this is a multifaceted the k-th scenario, defined by spectrum
task that calls for the accumulating and limitations. Inclusion of this contributor in
processing of Big Data. The simplest approach economic analyses allows the principle on
of direct evaluation is spectrum auction. One internalization to be met and to define real
of the latest example is underway C-band social cost of resource use resulting in a
auctioning in the US already bidding USD 80 Pareto-optimal plan.
billions [17];
The overall costs for the n-th spectrum user in the
pn — revenue of the n-th user. State operators use k-th scenario may be expressed as follows:
spectrum in order to fulfil political, economic
and social purposes, so normally pn =0. wn = pn + capn(snk) + opn(snk) + tcn(snk) + ecn(snk) (1)

Where commercial operators are concerned,
taking this component into account is very The basis of the input-output method lies in
important for establishing a favorable assessing the ratio of impact to costs, such that
investment climate in the relevant segment of efficiency in use of the spectrum for the n-th user
the market; may be expressed as:

capn — capital costs of the n-th spectrum user in en = yn/wn (2)
the k-th scenario. The costs of a radio system
depend on the available bandwidth and the In cases where it proves impossible in practice to
technical conditions of the spectrum use, e.g. place an objective monetary value on the impact
propagation [4]. The wider and less occupied generated by use of the specific spectrum use, the
the required band, the lower the capital costs cost ratio ak may be used as an economic criterion
for network development, both in terms of to study allocation scenarios:
coverage of the service area and cost of the ak = snk/wn (3)

equipment itself. Therefore, when analysing
the input-output matrix, it is necessary to The proposed approach offers an economic
examine the relationship capn = f(snk). In the mechanism to objectively assess the overall impact
analysis of a spectrum reallocation scenario, of a decision in regard to the use of a band at any
this item has to take into account the stage of the management cycle, and to compare
associated expenses and of compensation of alternative options with a view to selecting the
losers in accordance with potential Pareto optimum one in terms of the regulator priorities. A
criteria; full scale introduction of the proposed method in

оpn — operating costs of the n-th spectrum user in order to improve efficiency of the spectrum
the k-th scenario. These are also a function of allocation system requires development of big data
bandwidth since, first, according to Shannon, system to support the processing of all required
bandwidth shortfalls for a given quality of information. However, even simplified economic
service can be offset by increasing criteria (3) could provide essential results to be
transmission power, and, secondly, in taken into account. For example, WRC-19 allocated

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