The electro-magnetic spectrum is a resource of crucial significance to communications and to the economy. Efficient economic management of the spectrum requires that it be allocated to users and uses so as to maximise the discounted net social benefit. The paper outlines the existing system of spectrum management in Australia, and developes an economic framework for analysing relevant spectrum management issues. By reference to a number of alternative spectrum management systems it is argued that whilst market based allocations are unlikely to achieve optimum allocation, there is room for improvement in the present system of management.
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