Opportunity Cost
Opportunity cost is the value of the best alternative given up when choosing one option over another.
What is Opportunity Cost?
In spectrum management, regulators set some licence fees at the opportunity cost of the spectrum: the value of the use that others are denied. If spectrum is plentiful, the opportunity cost is zero; where demand exceeds supply, it rises with the spectrum's value. This mimics a market price more closely than fees based on international benchmarks or legacy prices.