Spectrum Auctions in Latin America and Europe

8 Pages Posted: 1 Nov 2016

Date Written: June 22, 2016

Abstract

This article studies radioelectric spectrum auctions. The main auction designs of one and multiple objects are briefly presented, emphasizing the combinatorial clock auction for multiple objects which has properties that make it attractive when auctioning several blocks of the spectrum. This is important because experience shows that a good design is fundamental for the success of an auction. An econometric estimation of the determinants of the price of the auctioned spectrum is performed, based on 160 observations of 20 Latin American and European countries from 1993 to 2015. We control for Gross Domestic Product, the Nasdaq telecom shares price index, population density and mobile penetration, and dummy variables for the speculative bubble of telecom shares prices previous to 2001 and spectrum caps, and use a reduced form log-linear regression to find out that low frequency bands (700 MHz, 800 MHz and 900 MHz) are the most expensive, followed by medium ones (1800 MHz, 1900 MHz, 2000 MHz and 2100 MHz) that are a bit cheaper, and the highest frequency bands (2500 MHz and 2600 MHz) that turn out to be the cheapest.

Keywords: Auctions, Empirical, Band, Radioelectric Spectrum, Spectrum Price

JEL Classification: L86

Suggested Citation

Zurita-Gnzález, Jesús, Spectrum Auctions in Latin America and Europe (June 22, 2016). CPR LATAM Conference, Mexico, June 22-23rd, 2016 in conjunction with CLT2016, June 20-23rd, 2016. Available at SSRN: https://ssrn.com/abstract=2862005

Jesús Zurita-Gnzález (Contact Author)

Instituto Federal de Telecomunicaciones ( email )

Insurgentes Sur #1143, Col. Nochebuena
Delegación Benito Juárez
Mexico City, 03720
Mexico

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