Abstract

Radio spectrum is a scarce natural resource, whose efficient management calls for a thorough understanding of its value. Quite a big number of approaches have emerged for spectrum valuation based on different elements, some with such potentially high uncertainty as future profits, total cost of ownership and societal benefits. Spectrum valuation will be important for the upcoming spectrum decisions by the regulators to deploy 5G networks but will face a new situation, where the use of higher carrier frequencies inherently limits network operations to local areas. This paper analyses the existing spectrum valuation approaches and identifies the key elements to consider, when defining and assessing the value of spectrum especially in the context of future local 5G networks. An important aspect is that the growing pressure to open the mobile market for location specific 5G networks has resulted in new sharing-based models for spectrum access, to allow the emergence of entrant local 5G operators to serve different verticals. We will therefore characterize the identified spectrum valuation elements in the new context of new local 5G networks operating in shared spectrum bands. Our approach considers spectrum valuation for 5G from the perspectives of the different stakeholder roles including regulators, mobile network operators (MNOs) and entrant local 5G operators.