This study, for Industry Canada, valued cellular and PCS spectrum licences which covered the 824-849/869-894 MHz and 1850-1910/1930-1990 MHz frequency ranges in Canada. This was done with a view to determining an appropriate annual fee for the next 10 year term of the licences.

Plum examined auction results in Canada and elsewhere for spectrum used to supply mobile voice and broadband data services and valuations derived in a number of instances where regulators have set prices on renewal. This review of auction results suggested a potential range for the valuation of cellular and PCS spectrum licences between $0.25 and $1.5/MHz/pop.

Plum also used avoided cost modelling and full enterprise value modelling to estimate spectrum value. These two approaches provided minimum and maximum estiamtes for the value of spectrum. From these estimates Plum derived an appropriate recommendation for the annual spectrum fee.