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Beyond spectrum auctions. Taking the next step to open spectrum access

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  • Noam, Eli

Abstract

While the current system of auctioning exclusive licences may be the best way to allocate new frequencies for today, spectrum auctions may soon become technologically obsolete, economically inefficient, and legally unconstitutional. An alternative is to step beyond the current paradigm of licensed exclusivity to a system of full openness of entry. This would allow access to spectrum bands through access fees that are determined by demand and supply conditions at the time. Prices for access would vary, depending on congestion. Long-term access at a certain price could be obtained by using a futures market. Such a system converts fixed costs of entry into marginal costs of usage, and removes incentives for collusive pricing.

Suggested Citation

  • Noam, Eli, 1997. "Beyond spectrum auctions. Taking the next step to open spectrum access," Telecommunications Policy, Elsevier, vol. 21(5), pages 461-475, June.
    • Handle: RePEc:eee:telpol:v:21:y:1997:i:5:p:461-475
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    Cited by:

    1. Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
    2. Robinson, Glen O, 1998. "Spectrum Property Law 101," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 609-625, October.
    3. Taylor, Gregory, 2018. "Remote Rural Broadband Systems in Canada," Telecommunications Policy, Elsevier, vol. 42(9), pages 744-756.
    4. Jain, Rekha, 1999. "Changing role of regulation: lessons from US spectrum auctions," Utilities Policy, Elsevier, vol. 8(1), pages 61-73, March.
    5. Banerjee, Aniruddha & Dippon, Christian M., 2009. "Voluntary relationships among mobile network operators and mobile virtual network operators: An economic explanation," Information Economics and Policy, Elsevier, vol. 21(1), pages 72-84, February.

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