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FCC Auction Of Spectrum Rights - College Term Papers

FCC Auction Of Spectrum Rights

According to the article, the "fine print matters" and without careful care and review, auction design can fail and bidders find ways to outsmart the system. The government had many aims which complicated auction design, including the prevention of monopolization, promotion of more minority firms in the game and achieving efficiency. Administrative decisions take into account possibly however, the benefits of one group over another. For example, the FCC may decide to favor a minority firm with less revenue by allowing them to make payment installments on certain items. Administrative decisions complicate the auction process and allow for to many mechanisms to occur in the bidding ...

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minority groups have the same opportunities to bid on spectrum rights as other corporations.

The reading states that efficiencies will be realized if bidders succeed in "aggregating some of the licenses." The government had a limited number of spectrum licenses available, that have to be spread over a large geographical area with many different wavelengths. Aggregation efficiencies allow firms to select a multitude of licenses that will work within their organization and system. By design, they are likely to choose those wavelengths that are most compatible. Each firm searching for spectrum rights typically has need for several "slices of the spectrum." When a license for one is not acquired, then they can bid on another compatible. Across states and boundaries, some efficiency must exist. Aggregation efficiencies allow for people, as exemplified in the writing, to have the ability to maintain roaming capabilities on their phone over a large region. If a customer is ...

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FCC Auction Of Spectrum Rights. (2015, November 9). Retrieved April 22, 2024, from http://www.essayworld.com/essays/FCC-Auction-Of-Spectrum-Rights/105177
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PAPER DETAILS
Added: 11/9/2015 02:57:03 AM
Category: Business
Type: Premium Paper
Words: 793
Pages: 3

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