The Efficiency of the FCC Spectrum Auctions

From July 1994 to July 1996, the Federal Communications Commission (FCC) conducted nine spectrum auctions, raising about $20 billion for the U.S. Treasury. The auctions assigned thousands of licenses to hundreds of firms. Were the auctions efficient? Did they award the licenses to the firms best able to turn the spectrum into valuable services for onsumers? There is substantial evidence that the FCC's simultaneous ascending auction worked well. It raised large revenues. It revealed critical information in the process of bidding and gave bidders the flexibility to adjust strategies in response to new information. As a result, similar licenses sold for similar prices, and bidders were able to piece together sensible sets of licenses.Auctions; Multiple-Item Auctions; Spectrum Auctions

Money Out of Thin Air: The Nationwide Narrowband PCS Auction

The Federal Communications Commission held its first auction of radio spectrum at the Nationwide Narrowband PCS Auction in July 1994. The simultaneous multiple-round auction, which lasted five days, was an ascending bid auction in which all licenses were offered simultaneously. This paper describes the auction rules and how bidders prepared for the auction. The full history of bidding is presented. Several questions for auction theory are discussed. In the end, the government collected $617 million for ten licenses. The auction was viewed by all as a huge success-an excellent example of bringing economic theory to bear on practical problems of allocating scarce resources.Auctions; Spectrum Auctions; Multiple-Round Auction

Communications Policy for 2006 and Beyond

In this Article, the Authors propose sweeping changes to the current telecommunications regulatory regime. With impending reform in telecommunications laws, the Authors argue that an important first step is the creation of a bipartisan, independent commission to examine and recommend implementation of more market-oriented communications policy. Through maximizing the operation of the markets, the authors argue that communications policy will better serve its goals of increasing business productivity and consumer welfare through the better services and lower prices. Important steps to achieve optimal market operation include deregulating retail prices where multifirm competition is available, minimizing the cost of public property inputs, overhauling universal service, assigning greater jurisdictional authority to federal regulators, and significantly reorganizing the FCC. The Authors argue that the timely implementation of these policies is crucial for achieving United States telecommunications policy goals

The Role of Licence-Exemption in Spectrum Reform

Spectrum reform initiatives in the US and Europe have identified a need to move away from the traditional command and control approach towards flexible and tradable licences and licence-exemption. Current regulatory initiatives are tending to focus on the flexible licensing route, and there is a risk that licence-exemption will be sidelined during the important formative years of this major policy transition. This must not happen; licence-exemption supports innovation and entrepreneurship and is an important second leg of a market-based spectrum management regime. A current case in point is the transition in UHF frequency bands from analogue to digital TV, where licence exempt use of resulting gaps in the spectrum could yield enormous benefits for citizens and consumers.spectrum policy, spectrum management, wireless services, deregulation, Telecommunications, regulation, Networks

Communications Policy for 2006 and Beyond

In this Article, the Authors propose sweeping changes to the current telecommunications regulatory regime. With impending reform in telecommunications laws, the Authors argue that an important first step is the creation of a bipartisan, independent commission to examine and recommend implementation of more market-oriented communications policy. Through maximizing the operation of the markets, the authors argue that communications policy will better serve its goals of increasing business productivity and consumer welfare through the better services and lower prices. Important steps to achieve optimal market operation include deregulating retail prices where multifirm competition is available, minimizing the cost of public property inputs, overhauling universal service, assigning greater jurisdictional authority to federal regulators, and significantly reorganizing the FCC. The Authors argue that the timely implementation of these policies is crucial for achieving United States telecommunications policy goals