The study was intended to help inform policy decisions on the possible ways forward for licensing analogue radio broadcasting spectrum and the likely value of the spectrum. The approach was constrained to a competitive award using a beauty contest by the existing regulations. However benchmarking was undertaken to identify how other countries had awarded radio broadcasting spectrum and also identify criterion used in the instance of beauty contests.
To provide a spectrum valuation the current market conditions, including key players in different geographic areas and potential revenue sources, were identified. The implications of different policy decisions were then examined using discounted cash flow modelling to understand their likely impact – for example the type of licences (i.e. national, regional, local, community) and the number of each type of licences that could potentially be awarded in any geographic area based on well-established radio planning principles. A key consideration was the likely impact of changes to advertising revenue income on business cases.