FINAL REPORT - Stakeholders - Ofcom

new entrants and new technologies would have a greater chance of gaining access to
the spectrum.
It is then necessary to consider the alternative actions a user can adopt if denied access
to a given frequency band. The possible actions vary across applications, but include:
• using an alternative service (e.g. public communications rather than self provided
communications);
• using alternative un-congested frequency bands - these alternative frequencies
must be in some way less attractive (in cost of exploitation and other terms) than
the frequencies in question, otherwise they would already be used;
• using an alternative technology (e.g. narrower bandwidth technology) which
allows more efficient use of spectrum currently occupied by the user;
• not using spectrum, and thereby either incurring higher costs or reducing profits.
The additional "cost" of these alternatives, over and above the cost of using the spectrum
in question, gives the spectrum its value. It is this additional cost that gives the marginal
value of spectrum.
Note that a number of general assumptions have been made in this report regarding the
costs for new or upgraded equipment:
• For aeronautical costs, the value of aircraft downtime in not considered since, in
common with most other cost benefit assessments carried out in the community,
it is assumed that new or upgraded equipment is provided during routine
maintenance. However, it is acknowledged that in some cases additional
downtime may be necessary although detailed consideration of this is beyond
the scope of the current work.
• Aeronautical costs for airborne equipment include the cost of the “service
bulletin”, which provides all the procedures and documentation changes
necessary to effect a certifiable equipment upgrade, but not “re-certification
costs” which are negligible in comparison.
2.6 Disclaimer
Whilst every effort has been made to ensure the accuracy of the information contained in
this report, the authors can not accept any responsibility for actions or decisions that may
be taken as a result of the information herein.
The opinions expressed in this Report are those of the authors and do not necessarily
reflect the views of Ofcom, nor does Ofcom accept responsibility for the accuracy of the
information contained herein.
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