21st Century Foundation





The Study of Spectrum Auction、Secondary Trading and System of Spectrum Management.

Release date / 2013-01-31

     In recent years, mobile communication has been deeply integrated into the daily lives of individuals and its rapid development has increased immense popularity which surpassed the amount accumulated from the past few years. Not only do technology developments contribute to the popularity, the trend of the liberalization of global telecommunications also helps create a free and competitive market. The most important fundamental resource for the applications and technologies is mobile communications spectrum, all of the wireless communications must rely on a certain range of the spectrum. With the development of mobile communication technology and open competition in the telecommunications business, all kinds of novel applications services were launched.

    As time goes by, the traditional spectrum regulation mechanisms faces different challenges, therefore government authorities from advanced countries are committed to rethink and improve their regulations for current spectrum resources. When observing other advanced countries, we could notice that there are different priorities in spectrum management policies. In recent years, the third generation mobile communications, wireless broadband access, digital wireless television and other types of wireless communications applications have emerged, furthermore the increase-capacity of digital content, causes the communication technologies trend to move toward a larger bandwidth in the future, all of these factors give rise to a rapid increase of spectrum usage.
    First, when it comes to spectrum and its management system, this study suggests that when the government is using the auction mechanism, in addition to the designing of auction rules, the major goal of auction mechanism is to create a competition market and to allocate efficiently spectrum resources. In the next few years, the renewal and release of Taiwan’s mobile communications licenses will reach its peak, facing license expirations of 2G, 3G, and WBA license which will be due by 2020. Moreover, the release of 4G licenses will begin in no time, management agencies will have to seize the change to make a more comprehensive change or overall planning, and it will also be an opportunity to transform the spectrum management system. The renewals, releases, and changes of management and regulations of licenses will not only affect companies in the market nowadays, but also the competitiveness of the new industries and the development of the industry nowadays.
    Secondly, as for the development of the secondary trading of spectrum, many countries have enacted regulations, so that the secondary trading of spectrum could be more active. Spectrum recycling mechanism is one of the focal point of the government spectrum resources management, and through this mechanism in hope of planning and maintaining a consistency in management operations. From observing the development of several advanced countries in these few years, this study suggests that the secondary transactions of spectrum have been taken seriously by authorities of different countries. Through spectrum auctions, it gives spectrum its property rights, and the opening of the secondary market improves the efficient use of spectrum through market mechanisms. In order to promote various innovative services of mobile broadband business, and in response to the increasing demands of upgrading transmission speed and spectrum needs, Taiwan thus introduced secondary trading which advanced countries have applied already, with the expectation to improve efficiency and flexibility of using the scarce resource of spectrum, to facilitate market demands and competitions in the future for telecommunication industries, and enhance the welfare of our society.
    Therefore, when facing the rise of mobile communications industry in dramatic environmental change today, our government authorities must take public interest and future development of the industry into consideration to fully understand the needs of our current society. Moreover, we have to take telecommunications spectrum management policies of advanced countries as references to further develop a comprehensive spectrum management system, ensuring and enhancing our international competitiveness in global international communication fields for the future.

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