The Adverse Economic Effects of Spectrum Set-Asides
Canadian Journal of Law & Technology, Vol. 6, pp. 131-140, November 2007
28 Pages Posted: 5 Mar 2009 Last revised: 8 Mar 2009
In February 2007, Industry Canada released a consultation that outlines its auction design for spectrum for Advanced Wireless Services. As part of its consultation, Industry Canada has contemplated the value of a spectrum set-aside in the AWS auction to facilitate the entry of a new wireless service provider in Canada. In this paper, we show that a set-aside for AWS spectrum in Canada will result in the uneconomic entry that Industry Canada refers to and that there are far more constructive ways than set-aside auctions to promote viable entry into the Canadian wireless industry.
Keywords: spectrum auction, advanced wireless services, Canada, spectrum set-aside, foreign ownership
JEL Classification: L10, L52, D45, D46
Suggested Citation: Suggested Citation