Alternative Licensing Arrangements and Spectrum Economics: The Case of Multipoint Distribution Service

摘要

At present, the Federal Communications Commission assigns radio licenses following a determination of the public interest. Whenever mutually conflicting license applications are filed, the Commission holds a comparative hearing. This assignment mechanism is criticized as cumbersome and unrealiable, and three alternatives are proposed: increasing the available spectrum, and either auctions or lotteries of radio licenses. An analysis is presented of the present system and these alternative arrangments for assigning rights to the frequency spectrum for the Multipoint Distribution Service (MDS). Although MDS is a relatively minor radio service, it serves as a prototype for message distribution services with a large potential for use in business communications. Moreover, the way in which the initial batch of MDS licenses was assigned provides a unique opportunity for empirical work on the economics of the licensing process.