Telecom Spectrum Auctions in India: The Theory and the Practice

Abstract

Telecom spectrum is a scarce natural resource whose misallocation is likely to have adverse impact on an economy. It is therefore crucial for a country to ensure efficient allocation of telecom spectrum. Although there are different methods of allocating spectrum, auction as a method of spectrum allocation is being adopted by increasing number of countries. This paper makes an attempt to provide an overview of auction as an allocation method for telecom spectrum in India, explaining the various possible auction formats along with their merits and demerits and also India’s performance in telecom spectrum auctions in the light of the experiences of some other countries which have adopted this method for allocating their telecom spectrum.