Pricing of spectrum based on physical criteria

With the emergence of dynamic spectrum allocation systems, old paradigms upon which the pricing of spectrum were based no longer hold. Provided vital systems can be protected the value of spectrum is expected to become more related to the value of data it can carry and the reliability it offers. The bands which have both good available bandwidth and good propagation properties are expected to become equally valuable regardless of which technology they are currently allocated to by the national regulator. This paper explores the pricing of spectrum using only its physical attributes, taking into account ability to carry data and the cost of infrastructure needed to provide a near equivalent service. The method presented in this paper may be used as a tool when international, regional and domestic regulators make decisions on what may be the highest value use for a particular band or perhaps where prices should be set to assist a band to move to its highest value use.