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The impact of spectrum assignment policies on consumer welfare

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  • Bahia, Kalvin
  • Castells, Pau

Abstract

The radio spectrum that governments license to mobile operators is central to the development of mobile broadband services. However, there is significant variation around how much and when spectrum is assigned as well as its costs. We assess whether policies to assign spectrum had an impact on consumer welfare in 64 countries during the 2010–2017 period. We find evidence that policies that reduce the amount of spectrum available to operators, delay the assignment of spectrum and increase the cost of spectrum all impacted two important consumer outcomes - network coverage and quality. The findings have implications for governments and regulators, particularly those betting on 4G and 5G as enablers of economic growth and sustainable development.

Suggested Citation

  • Bahia, Kalvin & Castells, Pau, 2022. "The impact of spectrum assignment policies on consumer welfare," Telecommunications Policy, Elsevier, vol. 46(1).
    • Handle: RePEc:eee:telpol:v:46:y:2022:i:1:s0308596121001324
    DOI: 10.1016/j.telpol.2021.102228
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    References listed on IDEAS

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    Cited by:

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    2. Sano, Ryuji, 2023. "Post-auction investment by financially constrained bidders," Journal of Economic Theory, Elsevier, vol. 213(C).
    3. Saringkarnpoonperm, Suttiwit & Khemakongkanonth, Chate & Srinuan, Pratompong, 2024. "The Impact of Spectrum Prices in the Telecommunication Sector on Network Investments," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302470, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Spectrum; Mobile communications; Auctions;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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