3G Spectrum Was Overpriced, and Why WiMAX Spectrum Is Undervalued
The price of WiMAX spectrum has been significantly cheaper than that of 3G spectrum—in some cases, less than one-thousandth of the 3G price.
3G spectrum was valued higher because it was purely mobile spectrum, licenses were national, it was the dot-com era, and deep-pocketed MNOs saw the spectrum as strategic to their future. Few of these conditions apply to WiMAX.
We expect WiMAX spectrum to increase in value: the frequencies will be lower, competition with MNOs will be more frontal, and more deep-pocketed players will participate in auctions.
Exhibit: Comparison of Price per MHz per Population of WiMAX and 3G Licenses in the UK (US$)
Source: Deciphering the Cost of WiMAX Spectrum, a Pyramid Research Analysis report.
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