Medical (ISM) band, is designated as unlicensed in the Bangladesh and in many other countries. Several MHz spectrums are in the 5 GHz band as the unlicensed national information infrastructure. Proposed another 255 MHz spectrum is in the 5.470-5.725 GHz band . Users of these unlicensed bands have to comply with “etiquette rules”, technical specifications, such as power limits or communication protocols intended to eliminate interference.
Spectrum Management and Market Organization
An unresolved issue is the transaction cost associated with the untested regimes. The different spectrum management regimes constitute particular sets of ownership and disposition rights whose implications for the evolution of mobile communications can be subjected to systematic analysis. Spectrum management directly affects the organization or the network platform and indirectly the opportunity set of vertically related industries. However, spectrum management does not fully determine industry performance but interacts with other factors. Among these are business strategy (e.g., the extent to which suppliers create modular technology), the cost and demand conditions of services, and public policies other than spectrum management (e.g., third party access rules, standardization). The most visible effect of the spectrum management regime is on the number of gateways to subscribers. In exclusively licensed services, this number is fixed by the government. Spectrum management also affects the cost of entering the market, a second determinant of the horizontal and vertical industry structure. Entry costs, in particular if they are sunk have an effect on market structure as higher sunk entry costs typically lead to a higher market concentration. With rival uses for spectrum, at least in some bands, it is widely seen as desirable to reflect the opportunity cost of spectrum. An increasing number of countries have therefore introduced spectrum fees, either determined administratively or in a spectrum auction. It is the latter, one-time fees that have raised concern as the present model of exclusive rights may create distortions that contribute to deviations between the opportunity cost of spectrum and the sunk price paid for a license. These potentially undesirable effects can be mitigated if a secondary market for spectrum is established, which would allow reducing the sunk portion of the one-time fee.
The Spectrum, Pricing and Analysis
The 700 Megahertz (MHz) spectrum – considered the most valuable at present – for mobile operators and will enable service providers to deploy higher-performance mobile broadband services over greater distances than the services they offer today. As a result, the operators will be able to roll out their service network with less equipment or investment for more people. In line with the suggestion of the International Telecommunication Union (ITU), Bangladesh can allocate 700 MHz band for fourth generation (4G) mobile technology – Long Term Evolution (LTE) – which provides far more speed data transfer than 3G technology. Its broadband attractive physics – like its ability to penetrate walls – the spectrum has become desirable yet again for broadband communications, particularly mobile broadband.
N u m b e r o f L i c e n c e s B a n d M H z Y e a r o f L i c e n c e S p e c t r u m P r i c e ( U S D , M i l l i o n ) D u r a t i o n o f l i c e n c e i n Y e a r
Spectrum Price per licence per year (USD, Mill)
8 0 0 , 9 0 0 , 1 8 0 0 , 1 9 0 0 , 2 1 0 0
2006 120 10 4 Singapore 3 2001 218.4 20 3.64 Hong Kong 2 2011 243 15 8.1 4 2001 671 15 11.183 Pakistan 5+ 2013 873 (target) 15 11.64
5 2013 525 15 7 India 7 2010 11751 20 83.93 Taiwan 5 2002 1397 16 17.46
3G is not just the access to mobile broadband, it has a cascading role in the economy through e-health, e-agriculture, e-education and employment. At present the mobile operators of Bangladesh have 11 percent 3G handset users. The 3G and BWA spectrum auctions held in 2013 and 2008 consecutively and added approximately USD 621 million to the exchequer. Globally, wireless spectrum auction prices are measured using “$/MHz/Pop” benchmark. This is defined as “price paid in US Dollars ($) per Megahertz (MHz) of spectrum for providing wireless service to one person (Pop) in the license area”. This auction pricing benchmark is determined by four key parameters:
License Area Characteristics and
Auction Structure While the $/MHz/Pop for 3G spectrum auction in India was one of the lowest in the world (at $0.32), the price for BWA spectrum was one of the highest (at $0.12), closely followed by Switzerland’s (3.4 GHz & 2.6 GHz) auction price. As the government is in the process of drawing up guidelines and structure of 2G spectrum auction, carriers have given their recommendations regarding the auction structure to the regulator. How auction will be structured and the various strategies adopted by both incumbent and new carriers in acquiring the spectrum, and most importantly, the manner in
(IJCSIS) International Journal of Computer Science and Information Security, Vol. 12, No. 3, March 201418http://sites.google.com/site/ijcsis/ ISSN 1947-5500