T-Mobile submitted a paper to the FCC, written...
T-Mobile submitted a paper to the FCC, written by Stanford University economists Gregory Rosston and Andrzej Skrzypacz, explaining T-Mobile’s proposal for rules restricting bidding for the incentive auction of broadcast TV spectrum. “We have developed a ‘Dynamic Market Rule’ ...…
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which is a general auction framework for a contingent spectrum-aggregation limit that will allow the marketplace to determine if such a limit will impair auction revenues to the point of reducing the amount of spectrum cleared,” the paper said (http://bit.ly/1bBOx1V). “This paper provides a set of straightforward steps for DMR that are discussed in widely accepted economic terminology. This framework would test the market with the spectrum aggregation limits in place and then provide a seamless relaxation of these limits if the forward auction does not meet the revenue target.” Meanwhile, Sprint filed a paper at the FCC making a case for aggregation limits by Martin Cave and William Webb, U.K.-based economists. “There is evidence that robust competition among wireless operators benefits both customers and the wider economy by spurring innovation and lowering prices,” the paper said. “In recognition of this, governments and regulators in Europe have worked to design auctions in ways which maintain competitive pressures. This effort has led them in many cases to impose spectrum-aggregation limits on the amount of sub-1 GHz spectrum which any operator can acquire.” Mobile Future on Monday released a paper by the Analysis Group arguing against spectrum aggregation limits (http://bit.ly/14uwIIr). “Assessing data from past spectrum auctions in Europe, Canada and the United States, the analysis shows that use of spectrum caps and other bidder participation restrictions actually have been harmful to wireless consumers, as well as competition and innovation,” Mobile Future said.