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The spectrum is paid for by the auction winners. A new auction happens yearly. Spectrum isn't traded in the market like land. It's leased by the government on a
by runeks 10y ago
The spectrum is paid for by the auction winners. A new auction happens yearly. Spectrum isn't traded in the market like land. It's leased by the government on a yearly contract. So no tax is needed.
- SilasX 10y agoThat sounds like an implementation of a 100% LV tax on radio frequencies.
- hx87 10y agoIt's public ownership + periodically auctioned leases, so it's hard to calculate a LV rate equivalent. The closest arrangement I can think of with respect to land would be Chinese real estate, where "title" is legally a 99-year lease from the government.
- JumpCrisscross 10y agoIs every band of spectrum re-auctioned every year? How do companies make multi-year investments?
- gozur88 10y agoIf you had a new auction every year nobody would put money into infrastructure development. Mobile providers spend billions every year maintaining and upgrading networks - there's no way they would do that if it was possible to lose the spectrum they were using.