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SPECTRUM AUCTIONS ARE NOT A PANACEA:
THEORY AND EVIDENCE OF ANTI-COMPETITIVE AND RENT-SEEKING BEHAVIOR
BY
SIMON WILKIE
Director, Center for Communication Law and Policy
University of Southern California
BACKGROUND
Today’s telecommunications sector presents a high degree of concentration. In the wireless sector
we have four major national competitors and the broadband access market is even more concentrated.
The residential broadband access market is effectively a duopoly where cable operators compete with
incumbent LECs. As such, competitive market forces are stymied resulting in higher prices, less
investment and less innovation to bring consumers better and more affordable services.
In short, consumers are getting shortchanged.
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