Question

Economics of Telecommunication

1) Contrast the way in which the cellular licenses were awarded with the way the PCS licenses were awarded. List advantages and disadvantages for each

Answer 1

Cellular license holder is a radiocommunication transferor that functions radio apparatus mounted in a base station which connects on the transmit & obtain frequencies within the radio frequency range 869.04 MHz - 893.97 MHz

On 15^th October, 1982 the Department of Industry declared a Gazette Notice. This charted the sub-allocation proposal for cellular spectrum wherein: 1 twenty   megahertz block of frequencies (i.e sub-band B) was made available to the local telephone firms in their operating domains; 1 twenty  megahertz block (i.e sub-band A) was allocated to remaining applicants & 2 blocks of 5 MHz of cellular spectrum were kept in reserve for any future requirements .

PCS license holder is a radiocommunication transferor that functions radio apparatus mounted in a base station which connects on the transmit & obtain frequencies within the radio frequency range 1850 MHz - 1990 MHz.

In 1995, Manley (the then Minister for industry), granted PCS permits to fourteen firms. To safeguard that a competitive environment would be upheld the Division also fixed a limit on the magnitude of spectrum that a single entity /its associates could hold. The spectrum cap was fixed at forty megahertz