NCTA Questions CTIA/NERA Spectrum Study
NCTA refuted arguments made by CTIA in a study, which found that providing an additional 400 MHz of licensed spectrum would deliver $2.6 trillion in combined GDP benefits and consumer surplus (see 2501230041). Economic consulting firm NERA wrote the study.
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The auction projections are too high, NCTA said Thursday: “NERA’s estimate of consumer surplus benefits hinges on a $1.07 per MHz-pop valuation drawn from recent C-Band and 3.45 GHz auctions. However, even one of NERA’s own authors has published projections that put that value closer to $0.41 per MHz-pop for future auctions. NERA can’t have it both ways.”
The study also “completely ignores the costs incurred in clearing spectrum for licensed use, both in terms of time and money,” NCTA said. The GDP projections aren’t based on realistic timelines, either, the group said. “When the timeline is adjusted and these GDP benefits are discounted over 10 years, the estimated GDP benefits drop from $1.1 trillion to $336 billion. That’s a massive 67% downward correction.”