Property commons for efficient spectrum use

The efficient use of radio spectrum as a valuable natural resource is imperative for the accomplishment of the UN Sustainable Development Goals (SDG). As the scarcity of resources becomes an ever more pressing problem, the existing management regimes should be improved to achieve the maximum economic benefit for society while respecting existing technical and regulatory restrictions. In the context of radio spectrum, scarcity of resources is not just the result of increasing quantities of radio devices and applications. To a large extent it is the result of ever- growing amounts of data that need to be transmitted wirelessly, thus putting an evolutionary pressure on both technical and operational conditions of spectrum utilization. This paper looks at economic theory for management of natural resources, with a primary focus on the role played by property rights mechanism. It analyses and compares different property rights for spectrum, highlighting their intrinsic advantages and disadvantages, and provides guidelines for a more beneficial choice to facilitate efficient utilisation of spectrum. The paper concludes with a case study related to deploying 5G broadband technology and suggests an introduction of "private commons" as spectrum ownership paradigm in the frequency bands allocated for new generation mobile broadband systems may be the best course of action. Some regulatory steps taken in direction of practical application of this regime in China and Italy are considered.