It is widely recognized that broadcast spectrum is utilized inefficiently. The principle technical cause of this inefficiency is inexpensive receiver design. In addition, the economics of the industry are such that users do not pay the opportunity costs of spectrum associated with these receivers. In this paper, I develop an approach that would internalize the spectrum opportunity costs so that consumers will make decisions that are economically more rational in terms of their choice of the program delivery channel.

This thesis describes digital television transition in the United States. Its goal is to introduce the way how digital television broadcasting in the United States was formed and analog broadcasting was switched off, and how these changes affected American television market and usage of broadcasting spectrum. In the first part I explain a context in which American television market has been formed and has developed until the beginning of 1990s, when the debate about digital television broadcasting commenced. Reason for a development of the new television norm was a desire to broadcast in high definition. Establishment of ATSC norm is explained in 4th chapter. Following chapter describes how digital television coverage grew and what the expenses were for viewers. The thesis then describes spectrum auctions and changes in the television market which digital television transition brought. When the transition ended need for a new debate about television emerged because current norm is becoming obsolete and did not allow broadcasting in ultra high definition. This lead to the development of ATSC 3.0 norm which allows broadcasting more programs in terrestrial television broadcasting and allows expanding terrestrial broadcasting to other mobile devices.