The development of the market for mobile communication depends on how issuing of licenses is managed. Licenses will by all means be necessary as mobile operators need allocation of radio spectrum, which is a scarce resource. It must be considered how licensees for mobile communication should be formulated. Licenses may include demands to geographical coverage, capacity, level of service, pricing etc. Rules for right of way and infrastructure sharing must also be specified. It is here important to carefully assess the market potential before demands in these areas are detailed. Demands for extensive geographical coverage may be an important contribution to ensuring universal access. On the other hand, overly ambitious requirements will be so costly for the operators that economic viability of providing the service is threatened. This will hamper network development as well as universal access in the long run.
Methods for assignment of mobile licenses are discussed further in the section III.G on frequency management.