Toolkit

Table of Contents Table of Practice Notes Table of Reference Documents Glossary
Module 1 Overview & Module 6 Executive Summary are also available in French, Spanish, Russian, Arabic and Chinese.
 

Global Capacity Building Initiative for ICT Regulators (GCBI)

The GCBI is a joint infoDev/ITU initiative for regulatory training more

4.3 Administrative Incentive Prices

Administrative Incentive Pricing (AIP) is used by some regulators as an additional tool to promote efficiency in spectrum use within a framework of administrative spectrum management.  Licences are issued through an administrative process and carry with them an obligation to make payments to the regulator or government agency. AIP licenses are designed to promote efficient spectrum use – not simply recovering the cost to management spectrum.  The idea is that if a user has unused spectrum, it will choose to return it rather than pay the charge.  Also, if a user can pay a lower fee by using spectrum more efficiently, that user may adopt more spectrum-efficient operations. The cost recovery price noted above can also motivate a user to return excess spectrum or to use spectrum more efficiently, but they may be too low to impose an appropriate level of discipline on licensees. This arises because the value to a nation of its spectrum greatly often exceeds the cost of operating the spectrum regulation organization.

Contents

4.3.1 The Opportunity Cost of Spectrum 4.3.2 Administrative Incentive Prices in Practice

Last updated 17 Nov 2008

The ICT Regulation Toolkit is a joint production of infoDev and the International Telecommunication Union.

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