The Cost of Spectrum Auction Distortions

This report is an analysis of The Cost of Spectrum Auction Distortions : Review of spectrum auction policies and economic assessment of the impact of inefficient outcomes.

Coleago Consulting was invited by the GSMA to examine the influence of policy choices on the outcome of mobile spectrum auctions, and to address the following questions in particular:
1. In the context of an auction, which secondary policy choices are most liable to distort
the spectrum allocation process?
2. To what extent can mobile operators reasonably mitigate these distortions (for example,
by adjusting their auction bid-values)?
3. What are the downstream consequences for consumers and the wider economy of these
distortions?
4. How can policy-makers reduce the risk of adverse results in the auction and of adverse
downstream consequences?
Based on an international review of past auctions, this report highlights avoidable risks of policy failure and seeks to promote the adoption of best practices in future spectrum awards.

Please download the report here: The Cost of Spectrum Auction Distortions. GSMA Coleago report. Nov14