Analog FM Services Spectrum Valuation for the Broadcasting Spectrum Auction

Abstract

The study of Analog broadcasting services spectrum valuation for the FM spectrum auction has objectives to find the value of the FM spectrum of Thailand's broadcasting service and to determine the minimum bid for the spectrum auction using the results of previous broadcasting service auctions, technical data and economic data of the United States, India, New Zealand, and Thailand. Analog broadcasting service's spectrum valuation for the FM spectrum auction consisted of 3 methods including International Benchmarking for spectrum valuation, Econometric for spectrum valuation, and Business Model for spectrum valuation. The findings demonstrated that by using the econometric method, the model does not meet the desirable characteristics of least squares or BLUE, estimates and can result in a Type I error, which can be unreliable. When compared to other methods, by using International Benchmarking, the spectrum value was found to be higher due to the valuation being based on the value of frequencies from outside Thailand, which may have a different context. By using the business model, Assumptions for Thailand have been established, including location factor, business factor, and service area economic factor as well as population coverage factor in the service area. The business model also considered cost factors for the service throughout the FM broadcasting service and the auction participation of both small and large entrepreneurs. The business model indicated that the highest spectrum value is 36.384 million baht and the lowest price is 0.105 million baht, and the starting bid for the auction is also the amount listed above.