Plum Insight: Reserve prices in spectrum auctions – why size matters

Auctions have proved to be a popular tool among governments and regulators for the assignment of
scarce spectrum resources for mobile use. While the economic rationale for auctions is sound, the actual
implementation has at times been flawed and the implications costly. This Insight looks at spectrum
auction trends over the last decade, focusing on reserve prices in particular, and the issues to consider in
setting them.