Radio Spectrum Allocation: Role of the Market.

The article discusses economic factors involved in the process of allocating radio spectrum in North America. In the last decade professional journal articles, studies and reports in the United States, Canada and other western countries have addressed various aspects of the problems due to non-recognition of economic factors in the process of allocating the radio spectrum. It has been observed as a scarce natural resource to be allocated by national governments and the international agencies rather than by markets. The radio spectrum is defined as a unique natural resource that differs from other resources in certain fundamental ways. Interest in the radio spectrum has stretched to include developing nations, which now represent a majority within the International Telecommunications Union. It also informs that the World Administrative Radio Conference met in 1979 to consider revisions of past policies and practices followed in administering the spectrum. Spectrum rights are probabilistic in nature, which depends upon environmental conditions at the time and the use of the spectrum by others.