Auction Design and the Success of National 3G Spectrum Assignments

28 July 2011
By Dr. Gary Madden with Dr. Ismail Saglam of TOBB University of Economics and Technology and Aaron Morey of Curtin University

This study empirically examines a sample of national wireless spectrum assignments for the period 2000-2007 to identify the sources of revenue variations. An econometric model that recognizes the censored nature of the sample relates per capita winning bid (per Mhz) values to auction design variables (license award process), national and mobile market conditions, spectrum package attributes, and post-award obligations identified from national regulatory authority tender documents. The analysis reveals that only some auction design variables independently impact realized 3G spectrum auction revenue in a manner consistent with auction theory.