4. Discussion of the occurrence of the two cases
How do spectrum allocation decisions split between ‘constant output’ and variable output’ cases, and precisely how ‘fixed’ must outputs be to justify a cost-based only approach? We start by asking if there are any fully ‘constant output’ cases. At first sight, the requirement looks exceptionally stringent. Clearly outputs of spectrum-using services of all sorts are changing all the time, but here we are focussing solely on changes in output directly associated with spectrum re-allocations. Four types of spectrum re-allocation are distinguished below, differentiated by whether the spectrum-using service is a marketed service produced by a commercial firm or a (usually) non-marketed service produced by a public body: Commercial marketed service to commercial marketed service Many such re-allocations owe their origins precisely to increasing demand for one service, leading to the need for further spectrum, while the need for spectrum in another grows more slowly, either because of stagnant demand for the service, or because of greater technical efficiency of spectrum use