Table of Contents

Table of Contents
1. The market-based liberalization of communications infrastructures …………………………….. 11
1.1 Introduction …………………………………………………………………………………………………….. 11
1.2 Research question and research plan …………………………………………………………………… 15
1.3 The spectrum resource ……………………………………………………………………………………… 17
1.3.1 Spectrum Management ……………………………………………………………………………….. 23
1.3.2 International Radio Spectrum Allocation ………………………………………………………. 23
1.3.3 Regional Radio Spectrum Allocation ……………………………………………………………. 24
1.3.4 National Radio Allocation and Assignment …………………………………………………… 25
1.4 Case study: The policy of liberalization via spectrum trading in the U.K. ……………….. 25
1.5 Structure of research …………………………………………………………………………………………. 27
2. The Market as Objective Approach …………………………………………………………………………. 31
2.1 Introduction …………………………………………………………………………………………………….. 31
2.2 Neoclassical Economics ……………………………………………………………………………………. 32
2.3 New Institutional Economics …………………………………………………………………………….. 37
2.4 Conception of institutions in NIE ……………………………………………………………………….. 43
2.5 Analytical objectives in NIE ……………………………………………………………………………… 44
2.6 Operational characteristics of the MO approach …………………………………………………… 44
2.7 Conclusion ………………………………………………………………………………………………………. 45
3. The Market as Tool Approach ……………………………………………………………………………….. 47
3.1 Introduction …………………………………………………………………………………………………….. 47
3.2 Original Institutional Economics ……………………………………………………………………….. 49
3.3 Conception of institutions in OIE ……………………………………………………………………….. 53
3.4 Analytical Objectives of OIE …………………………………………………………………………….. 56
3.5 American Pragmatism ………………………………………………………………………………………. 58
3.5.1 Reasons for action ……………………………………………………………………………………… 59
3.5.2 What we claim to know ………………………………………………………………………………. 59
3.5.3 What constitutes an explanation …………………………………………………………………… 61
3.5.4 The impossibility of objective descriptions of possible outcomes in the future ….. 61
3.5.5 Truth ………………………………………………………………………………………………………… 62
3.6 Volitional Pragmatism………………………………………………………………………………………. 62
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3.6 Operational characteristics of the MT approach …………………………………………………… 66
3.7 Conclusion ………………………………………………………………………………………………………. 66
4. Case Study: Spectrum Trading, U.K………………………………………………………………………… 71
4.1 Introduction …………………………………………………………………………………………………….. 71
4.2 The situation prior to the introduction of spectrum trading ……………………………………. 72
4.3 The Cave Report ………………………………………………………………………………………………. 74
4.4 The legal framework for spectrum trading …………………………………………………………… 76
4.5 Spectrum trading by license category …………………………………………………………………. 80
4.5.1 Business radio ……………………………………………………………………………………………. 80
4.5.2 Spectrum access …………………………………………………………………………………………. 84
4.5.3 Concurrent spectrum access ………………………………………………………………………… 84
4.5.4 Broadband fixed wireless access – Scanning telemetry …………………………………… 85
4.5.5 Fixed services ……………………………………………………………………………………………. 86
4.5.6 Public wireless networks …………………………………………………………………………….. 86
4.5.7 Trading in each of the license categories ………………………………………………………….. 90
4.6 Conclusion ………………………………………………………………………………………………………. 93
5. The MO approach applied to the U.K. ……………………………………………………………………… 95
5.1 Introduction …………………………………………………………………………………………………….. 95
5.2 Coase’s Central argument …………………………………………………………………………………. 96
5.3 Coase as applied by subsequent proponents of the MO approach …………………………… 98
5.4 The MO approach applied to the U.K. case ……………………………………………………….. 101
5.5 Conclusion …………………………………………………………………………………………………….. 103
6. The MT approach applied to the U.K. case …………………………………………………………….. 105
6.1 Introduction …………………………………………………………………………………………………… 105
6.2 The market as an institutional tool of spectrum policy ………………………………………… 107
6.2.1 Interpretations of the historical record …………………………………………………………. 111
6.2.2 A market type system with prices……………………………………………………………….. 113
6.3 The MT approach and the U.K. case …………………………………………………………………. 114
6.3.1 Assessment dimensions …………………………………………………………………………….. 120
6.3.2 Business Radio ………………………………………………………………………………………… 121
6.3.3 Spectrum access ……………………………………………………………………………………….. 125
6.3.4 Concurrent spectrum access band – Fixed wireless access …………………………….. 126
6.3.5 Broadband fixed wireless access – Scanning telemetry …………………………………. 128
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6.3.6 Fixed services – Fixed links ………………………………………………………………………. 129
6.3.7 Public wireless networks …………………………………………………………………………… 130
6.4 Hypotheses that explains spectrum trading in the U.K. according to the MT approach
………………………………………………………………………………………………………………………….. 132
6.5 Conclusion …………………………………………………………………………………………………….. 134
7.1 Comparing the MO and MT approaches ………………………………………………………………. 137
7.1 Introduction …………………………………………………………………………………………………… 137
7.2 Epistemic Communities ………………………………………………………………………………….. 138
7.3 MO/MT as epistemic communities …………………………………………………………………… 139
7.4 How the MO/MT approaches explain the U.K. case …………………………………………… 142
7.5 The impact of the MO/MT approaches on the U.K. policy ………………………………….. 144
7.6 Conclusion …………………………………………………………………………………………………….. 144
8. Conclusion: Radio spectrum allocation: Role of the Market (Revisited) …………………….. 149
8.1 Introduction …………………………………………………………………………………………………… 149
8.2 Recommendations based on the MO/MT approach …………………………………………….. 151
8.3 When to use the MO/MT approach in spectrum policy reform …………………………….. 153
8.4 How the MO and MT approaches can work together – A plea for pluralism ………….. 154
8.5 Further research ……………………………………………………………………………………………… 155
8.6 Conclusion …………………………………………………………………………………………………….. 156
Appendices …………………………………………………………………………………………………………….. 159
A. Research Interview Questions …………………………………………………………………………. 159
B. Response – Senior Ofcom Representative ………………………………………………………… 162
C. Response – Fiachra O’Doherty ……………………………………………………………………….. 169
D. Response – Peter Anker …………………………………………………………………………………. 172
Abbreviations …………………………………………………………………………………………………………. 177
Bibliography ………………………………………………………………………………………………………….. 179
Samenvatting in het Nederlands ……………………………………………………………………………….. 189
Curriculum Vitae ……………………………………………………………………………………………………. 191

Abstract

This thesis considers the policy of liberalization via spectrum trading in the U.K. through the lenses of two perspectives on markets. The central research question of this thesis is: How is the outcome of the policy of liberalization via spectrum trading in the U.K. considered through the lenses of two perspectives on markets: the MO and MT approach? The MO approach (Market as objective) is the first perspective considered and it implies that an efficient resource allocation in spectrum will result from the introduction of markets. In the second perspective the market is used to facilitate rather than replace spectrum administration. This perspective is referred to as the market as tool approach (the MT approach). The thesis explores the difference in these two approaches, the relationship between them and the implications of taking one approach over the other.

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