UK Spectrum Policy Forum Plenary Meeting – 9 October 2014 Tony Lavender, Cluster 3 Chair and CEO, Plum Consulting Update from Cluster 3: Economic Analysis More information at: http://www.techuk.org/about/uk-spectrum-policy-forum All rights reserved

1. Plum Consulting, London | +44 (0)20 7047 1919 | www.plumconsulting.co.uk
Spectrum Policy Forum
Cluster 3
Tony Lavender
9th October 2014

2. Work programme
 The cluster has met once since the last plenary and looked at three sectors
・ Mobile
・ Broadcast and PMSE
・ Space
 Another meeting is planned for 14th October but this may need to be postponed
until later in the year – we will take a decision on this by the end of this week
・ Logistics of lining up speakers – want to hear from more sectors and from
Ofcom in respect of the assessment it makes when considering change of use
 Initial task of Cluster 3 is to contribute information to the DCMS expert panel
looking at a framework for the social value of spectrum
・ This information is supplied as it becomes available

3. DCMS expert panel
 The expert panel has met several times
 The lack of clear terms of reference for the panel had been raised as a concern
and these have now been clarified by the DCMS
・ To advise on options for evaluating social value of spectrum which can be
deployed alongside evaluation of economic value
・ To consider how these options may or may not be consistent with the
Government's valuation principles
・ To consider how these options might be applied to future decisions on the
change of use of spectrum
・ To deliver a draft report outlining options and a proposed approach for
evaluating social value of spectrum
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4. Practical issues
 Framing the problem
・ There are a number of accepted economic techniques for assessing the
economic value (or private value) of spectrum
・ Assessing social value is a more difficult proposition as it implies understanding
the total value of spectrum (i.e. economic + social or private + public)
・ Social value can cover a wide set of things including quality of life, access and
inclusion and cultural understanding (it can have positive and negative aspects)
 Measurement
・ Given the nature of social value, measurement requires a range of techniques
including primary research of preferences and options
・ Much harder to quantify the output
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