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INTERMEDIA

STICK WITH AUCTIONS

30.04.2019
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By Martin Cave

High spectrum prices realised at auction have always been a sore point among bidders, especially in the mobile sector. Such complaints tend to reach a crescendo when a new generation of technology – at present 5G – imposes high investment demands, and they are further compounded by the more expansive political targets for the sector. I argue that, while complaints about excessive prices can be fully justified in some circumstances, competitive auctions, amplified in various ways, should still play a major role in initial spectrum assignments. They should be complemented by secondary trading of licences along with the ability to sub-lease amounts of spectrum to third parties.

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While a number of problems have surfaced with using auctions to allocate spectrum, they remain the best competitive option, writes MARTIN CAVE.

Intermedia Issue:
Volume 47, Issue 01
Issue Date:
April 2019
Theme:
Infrastructure and Spectrum, Competition Policy
Martin Cave OBE (Dr) Martin Cave OBE (Dr) Visiting Professor, London School of Economics

Volume 47, Issue 01 Features

EDITORIAL 30.04.2019 Marc Beishon
DIGITAL CHANGE 30.04.2019 Cristina Murroni
BANDWIDTH IN ABUNDANCE 30.04.2019 Blair Levin
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