Accelerating the Introduction of Spectrum Sharing Using Market-Based Mechanisms

Spectrum management needs to be effective, in that spectrum must be allocated to the right uses, and efficient, in that spectrum must be assigned to those that value it the most. Technological advances and demands for further spectrum availability from mobile broadband operators (among others) require spectrum management to promptly and firmly incorporate schemes to increase the technical efficiency of spectrum utilization. One such scheme is spectrum sharing, which has the potential to result in higher spectrum utilization and greater spectrum value. In such context allocation and assignment, two critical functions to manage the spectrum are also discussed. By means of tutorial-styled presentation of spectrum sharing techniques and policy decisions, this article argues that in the course of deciding about allocation and assignment of spectrum, a spectrum authority can and should include market-based mechanisms that incentivize incumbents to share spectrum needed by entrants.