Auctions and allocations of spectrum are growing. In June 2010, the Federal Communications Commission announced it was seeking to auction 500 megahertz of federal and commercial spectrum to help meet the needs of mobile devices and streaming video. The debate on whether television broadcasters will have to sell spectrum as part of the FCC's National Broadband Plan also continues.
To help companies stay on top of the changes in broadband and wireless spectrum, BIA/Kelsey provides fair market valuation services, competitive analysis, financial comparisons of lease offers, consulting and Geographic Service Area (GSA) Mapping. Our services cover all the various areas of broadband and wireless spectrum available, including the Educational Broadband Spectrum (EBS) and Broadband Radio Spectrum (BRS).
BIA/Kelsey has monitored spectrum rule changes and conducted valuations in the 2.5 GHz band for more than 10 years. Our expert valuation team has worked on more than 200 EBS/BRS licenses, totaling $400 million, since the announcement of the rebanding in 2004.
Spectrum Valuation Report Description
A BIA/Kelsey spectrum valuation report includes the following components critical for you to be able to fully maximize the value of your EBS/BRS license:
A detailed history of the industry, how regulations have changed over the years, highlights of the new rules/rebanding of the spectrum, and a description of the commercial operators and their current status.
Market and Competitive Overview
BIA/Kelsey provides demographic and economic statistics of the counties covered by the GSA based on the results of an engineering study. Factors such as population growth, retail sales, household income, etc. are used to make assessments about the value of the spectrum. Our report also includes an overview of which commercial operators have an existing presence in the market and if any EBS licensees in the area have entered into lease agreements.
BIA/Kelsey estimates the fair market value or fair market lease value of the spectrum using a comparable sales analysis. A price per MHzPop multiple is calculated for each of the transactions in our database in order to compare values across various markets. (link on MHzPop with definition - MHzPop multiple is calculated by dividing the sales price by the product of the total number of MHz available and the population served by the GSA). Adjustments are the made to the multiples to reflect the marketability, market size, economic statistics, and competitive situation in the market.
Be sure to maximize the value of your EBS/BRS license with a BIA/Kelsey valuation report.
Geographic Service Area Mapping
Through our proprietary database of transactional information, Geographic Service Area (GSA) Mapping, and independent team of experts, BIA/Kelsey provides a clear view of spectrum market value, allowing us to compute the maximized value of each asset.
Lease analysis is another service BIA/Kelsey provides. Often, licensees are approached by a number of different operators interested in leasing their spectrum for long or short terms. Which lease offer is most favorable? Comparing the financial aspects of these leases can be difficult. Evaluating the present value of a 30-year lease can be highly subjective, depending on the amount of risk associated with receiving the payments into the future.
BIA/Kelsey can spell out the risks in a detailed assessment of your lease offer. The lease analysis includes a discussion of the level of risk associated with entering each agreement.
BIA/Kelsey can perform expert and independent fair market valuations of spectrum licenses, evaluate the financial aspects of competing lease offers, and assist with RFP creation.
Expertise to Meet Your Spectrum Needs
With more than 5,000 client engagements for companies ranging from Fortune 500 to small and midsize start-ups, our experts possess the most comprehensive knowledge of the full media landscape available in the industry.
WIndependent and customer-focused, BIA/Kelsey is primed to deliver the best value and the best results for your company.
Engage BIA/Kelsey today with your business questions, and let's explore together how we can meet your spectrum valuations needs. Contact us today at (703) 818-2425 or e-mail our Spectrum Valuation Team at firstname.lastname@example.org.
Curious about the transaction value and the number of stations sold monthly and year-to-date? View Now
The Valuation of the Decade: BIA/Kelsey's Modeling and Strategic Analysis of Facebook's Financial Performance Offering an analysis of how the Facebook valuation affects your market position and whether the company is indeed ushering in new standards for valuing media and technology companies. Webinar Video | PDF of Slides | All Webinars