Plum valued spectrum licences for 825-845 MHz and 870-890 MHz spectrum for the purposes of setting government expectations with regard to licence reissue prices.
There were three elements to the study:
- A review of international evidence on the value of spectrum licences in the same or similar frequency bands as revealed in auctions and licence renewal processes elsewhere.
- Modelling of values based on the projected revenues and costs of a hypothetical operator. A spreadsheet business model was constructed and calibrated against data and projections for the Australian market.
- Consideration of the disruption costs that might be associated with auctioning licences and proposing a range of values for the renewal price.