Regulator flexibility and the administrative allocation licensing of 3G spectrum
Globally, most nations assign radio spectrum to provide 3G mobile services during the period 1999–2007. While there is consensus among most economists that auctions are the preferred assignment mechanism, the assignment mode is split, more or less, equally (in terms of the number
of licences issued) between administrative allocations and auctions. With auction procedures tending to raise more revenue for governments (Cartelier, 2003) the question that naturally arises is: why are administrative allocations so popular a method to assign spectrum? McMillan (1995) conjectures
that administrative allocations provide additional ‘flexibility’. Accordingly, this study examines the performance of 3G assignments in terms of an econometric analysis of a unique sample of national 3G spectrum administrative allocations. These outcomes are modelled as depending
on spectrum package attributes, and post-award network deployment requirements.
Keywords: 3G spectrum assignment; D82; L51; L96; administrative allocations; wireless telephone markets
Document Type: Research Article
Affiliations: Department of Econometrics and Quantitative Modeling,Curtin University, Perth,WA 6845, Australia
Publication date: 01 May 2013
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