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Allocative efficiency of the mobile industry in India and its implications for spectrum policy

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  • Prasad, Rohit
  • Sridhar, Varadharajan

Abstract

This paper outlines the various stages of spectrum policy in India and highlights the underlying principle of maximal usage of spectrum advocated in the policy. It argues that allocative efficiency is a more appropriate policy measure and illustrates the absence of allocative efficiency in the Indian mobile industry. Possible causes of allocative inefficiency including insufficient spectrum allocation per operator, underpricing of spectrum, and inefficient use of the radio access network infrastructure are highlighted. Corresponding policy implications and prescriptions are discussed.

Suggested Citation

  • Prasad, Rohit & Sridhar, Varadharajan, 2009. "Allocative efficiency of the mobile industry in India and its implications for spectrum policy," Telecommunications Policy, Elsevier, vol. 33(9), pages 521-533, October.
    • Handle: RePEc:eee:telpol:v:33:y:2009:i:9:p:521-533
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    Cited by:

    1. Jang, Yunjeong & Park, Seungkeun & Kim, Kiwon & Kim, Yongkyu, 2024. "Valuation of Mobile Spectrum to be Reassigned," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302518, International Telecommunications Society (ITS).
    2. Rohit Prasad & Shishir Srivastava, 2012. "Regulating Competition in ICT Value Networks," Review of Market Integration, India Development Foundation, vol. 4(2), pages 221-237, August.
    3. Prasad, Rohit, 2015. "The production function methodology for estimating the value of spectrum," Telecommunications Policy, Elsevier, vol. 39(1), pages 77-88.
    4. Sajal Ghosh & Rohit Prasad, 2012. "Telephone penetrations and economic growth: evidence from India," Netnomics, Springer, vol. 13(1), pages 25-43, April.
    5. Ashutosh Jha & Debashis Saha, 2022. "Mobile Broadband for Inclusive Connectivity: What Deters the High-Capacity Deployment of 4G-LTE Innovation in India?," Information Systems Frontiers, Springer, vol. 24(4), pages 1305-1329, August.
    6. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    7. Ashutosh Jha & Debashis Saha, 2019. "Examining categorization of Telecom Circles in India using unsupervised k-means clustering on techno-economic indicators," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 365-383, December.
    8. Rohit Prasad & Rupamanjari Ray, 2015. "The relation of traffic balance and network size: a case from the indian mobile industry," Netnomics, Springer, vol. 16(3), pages 149-167, December.
    9. Prasad, Rohit & Kathuria, Rajat, 2014. "The value of 1800MHz and 2100MHz spectrums in India and implications for auction design," Telecommunications Policy, Elsevier, vol. 38(3), pages 223-235.
    10. Sridhar, Varadharajan & Casey, Thomas & Hämmäinen, Heikki, 2013. "Flexible spectrum management for mobile broadband services: How does it vary across advanced and emerging markets?," Telecommunications Policy, Elsevier, vol. 37(2), pages 178-191.
    11. Kim, Yongkyu & Kim, Kiwon & Jang, Yunjeong & Park, Seungkeun, 2022. "Value of Spectrum for Mobile Communications: Case of Korea," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265642, International Telecommunications Society (ITS).
    12. Rana, Md Sohel & Prasad, Rohit & Yoon, Hyenyoung & Hwang, Junseok, 2020. "Opportunity cost of spectrum for mobile communications: Evaluation of spectrum prices in Bangladesh," Telecommunications Policy, Elsevier, vol. 44(3).

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