Valuing Federal Spectrum
Abstract
In the United States, large portions of the most valuable radio spectrum remain assigned for the use of federal agencies. As demands for commercial wireless services continue to grow, a natural tension develops. While federal assignments often support critical public missions, there are strong reasons for believing that deployments do not achieve their priorities efficiently. Indeed, current spectrum governance provides limited mechanisms for measuring or comparing social values between federal assignments, or across public and private (commercial) deployments. However, recent U.S. legislation, including the 2025 budget reconciliation bill, requires the systematic valuation of federal spectrum to better inform decisions about spectrum allocation. This task prompts questions about how to calculate such magnitudes. This paper develops an economic framework for valuing federal spectrum by distinguishing among license prices, opportunity costs, and net social benefits, while examining methodological and institutional challenges confronted. The framework seeks to advance understanding of the tradeoffs between value generated per federal spectrum assignments and bandwidth opened to commercial access.
Read the full piece at SSRN.