Application of residual book value method to calculate costs of spectrum refarming

The radio spectrum refarming is not only a very important but also complicated technical and economical task for the telecommunication industry itself as well as for the whole national economy. To evaluate the practicability of this process different methodological approaches could be used. Two methods of calculation of the spectrum refarming are being envisaged now at the ITU Study Groups.: calculation using residual book value and calculation using residual economic value. This article is devoted to the first method illustrating how it works when operators of the national net NMT-450 shift to IMT-MC-450 technology in the same frequency band. The suggested approach can take into account national tax legislation and analyzing the trends in the residual book value of communication equipment permits to make timely decision about investments into the process of transition to new technologies using the same or different frequency bands.