Economic aspects of spectrum management

Problems associated with the allocation of the radio frequency spectrum are addressed. It is observed that the current method very likely does not allocate the resource to those most valuing its use. Ecomonic criteria by which the effectiveness of resource allocation schemes can be judged are set forth and some thoughts on traditional objections to implementation of market characteristics into frequency allocation are offered. The problem of dividing orbit and spectrum between two satellite services sharing the same band but having significantly different system characteristics is discussed. The problem is compounded by the likelihood that one service will commence operation much sooner than the other. Some alternative schemes are offered that, within proper international constraints, could achieve a desired flexibility in the division of orbit and frequency between the two services domestically over the next several years.