Spectrum Management and Broadcasting: Current Issues

Broadcasting policy has traditionally been supported by a 'command-and-control' system of assigning frequencies for terrestrial transmission, but this link is being eroded by the emergence of other technologies – cable, satellite, IPTV, mobile broadcasting - and by the emergence of multi-channel television, which is facilitated by digital terrestrial television. The switch off of analogue terrestrial transmission is being achieved through significant government intervention, but with diverse intentions relating to the use of the freed spectrum. It is argued, however, that the trend to liberalise spectrum policy is strong, and that this will promote the liberalisation of broadcasting.spectrum management; broadcasting policy; digital switchover

Regulation and efficiency incentives: evidence from the England and Wales water and sewerage industry

This paper evaluates the impact of the tightening in price cap by OFWAT and of other operational factors on the efficiency of water and sewerage companies in England and Wales using a mixture of data envelopment analysis and stochastic frontier analysis. Previous empirical results suggest that the regulatory system introduced at privatization was lax. The 1999 price review signaled a tightening in regulation which is shown to have led to a significant reduction in technical inefficiency. The new economic environment set by price-cap regulation acted to bring inputs closer to their cost-minimizing levels from both a technical and allocative perspective

European Communications at the Crossroads. Report of the CEPS Working Party on electronic communications. CEPS Task Force Reports No. 39, 1 October 2001

Community institutions are now busy with the second readings of the proposals for a new regime for regulating the European Communications Industry. While many aspects of the proposed new regulatory arrangements are widely accepted, a number of key choices still have to be made. The regulation of European communications is therefore at a crossroads. This CEPS Working Party Report considers the key choices that lie ahead, with the aim of providing the institutions with some fresh input from well placed observers

Regulation and Barriers to Trade in Telecommunications Services in the European Union

Recent advances in telecommunications, particularly using fibre technologies, permit many services based on data-processing to be performed anywhere in the world. They thus become tradable and subject to the laws of comparative advantage. A good example is data-processing within large multi-national corporations, the integrated performance of which can reduce cost and add considerable value. Whereas a single market for the provision of such services has arisen in the US, the equivalent single market in the European Union is impeded by absent or imperfect regulation conducted at the national level, which fails to create a level playing field between the country’s former telecommunications monopolist and foreign competitors and prevents the emergence of trade in services, at considerable potential cost to firms operating in the EU. The paper discusses how this problem can be resolved by improved regulatory practice and evaluates the prospects for institutional change, in the form of more centralised scrutiny of regulatory remedies, which would make this more achievable.

Solving Spectrum Gridlock: Reforms to Liberalize Radio Spectrum Management in Canada in the Face of Growing Scarcity

Canada lags other countries in solving the problem of spectrum scarcity amid rising demand driven by cellphones and other wireless products. In this study, the authors call for reforms to liberalize the allocation of spectrum in Canada with a market-based approach, to increase competition, for the benefit of consumers and other end users.Economic Growth and Innovation, radio spectrum, wireless technology, Industry Canada

Free to Air Television: 700 MHz and beyond

In conjunction with the Oxford Media Convention today, we are publishing comments from some of the speakers. Martin Cave, who is a visiting professor at Imperial College Business School, Deputy Chair of the Competition Commission, and a regulatory economist specialising in competition law and network industries, shares his comments on free-to-air (FTA) television and spectrum management

How disruptive is 5G?

The hypothesis is put forward that, after three decades of stability, there is now the prospect of significant change in the vertical and horizontal structure of the mobile market place. On the supply side, significant factors are, first, the availability of a new and very powerful form of mobile connectivity in the shape of 5G, and second, software defined networking, which allows a single network to provide a variety of heterogeneous services or ‘slices’. On the demand side, the digital transformation of the whole economy (and not just the communications sector) creates the need for diverse communications functions operating in a universe with a much wider set of digitally transformed services. Mobile operators will find themselves contesting customer relationship with firms or other organisations providing these services in an integrated fashion, and thus risk replacing their direct link with end users with becoming the wholesale supplier of an expanded but ‘commoditised’ communications product. We may also observe fewer radio access networks; more competitive backhaul; and the (partial) vertical disintegration of mobile network operators. The regulatory changes implied may include heavier regulation of fewer RANs, and the need for market analyses to confront situations in which network operators sell more and more of their services to a variety of heterogeneous content and application providers – some of them exercising substantial levels of market power

Incentive regulation: expectations, surprises, and the road forward

Forty years have passed since an inflation-adjusted price cap, widely called RPI-X, was proposed as a way of controlling prices in the UK’s newly privatised monopoly telecommunications company by a form of incentive regulation. The paper traces developments since then in several jurisdictions, within the context of a wider field of changing regulatory governance involving legislatures and governments as well as regulatory agencies. The focus is on, first, the experience of increasing complexity of the incentive schemes adopted, and second on the growing political salience of regulatory decisions which adds goals such as net zero, with more direct quantitative targets, to maximising consumer welfare. The implications of these changes for regulatory interventions are considered

Auction design and auction outcomes

We study the impact of spectrum auction design on the prices paid by telecommunications operators for two decades across 85 countries. Our empirical strategy combines information about competition in the local market, the level of adoption and a wide range of socio-economic indicators and process specific variables. Using a micro dataset of almost every mobile spectrum auction performed so far—both regional and national—we show that auction design affects final prices paid. Two designs (SMRA with augmented switching and CCA with core pricing) result in auctions with systematically higher normalized returns. Further, we document that spectrum ownership appears to affect prices paid in subsequent auctions. We discuss the mechanisms of cost minimization and foreclosure faced by operators in different regulatory environments. Our findings have implications for policy-makers and regulators