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Auctions: Success of Failure?

Auctions: Success of Failure?

From the country summaries I set out in part 1 (Intermedia, October 2018), a number of issues have emerged as key factors affecting the success or failure of spectrum auctions. It is to a discussion of these issues that I now turn. 

REVENUE MAXIMISATION

Much of the emphasis in auction design, reporting and evaluation has been placed on the revenue raised. The prospect of substantial inflows into treasury and the consequent fiscal impact on borrowing may be very attractive (Morocco’s GSM auction, for example, generated the equivalent of 5% of foreign debt), but is both short term and short-sighted in the view of many commentators.

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