ABSTRACT

This chapter will consider the extent to which temporary secondary rights to interim use of spectrum can operate to minimize the net opportunity costs of nonuse. Because dislodgment or conversion costs may be substantial where occupied spectrum is reallocated, the opportunity costs of nonuse are often smaller than may appear. The cost of interim nonuse is really the forgone benefits minus the dislodgment-conversion costs, including the cost of building extra technical flexibility into the hardware, the probable losses due to frequency sharing that result from unavoidable delays in conversion, and the cost of subsequent policing.