Tuesday, September 26, 2006

Spectrum allocation

The existing rules for spectrum allocation are flawed. Operators receive spectrum based on the number of subscribers on their networks, and not on the amount of spectrum they actually use. As the fee is a proportion of their service revenues and not spectrum allocated, there is no incentive to use the spectrum efficiently. The current system encourages adding subscribers but not expanding the range of services or their quality. There are numerous complaints and disputes about unverified subscribers as well as the deteriorating quality of mobile services. Some operators are in queue for additional spectrum, other have a surplus.