Indian 3G Auctions Shake Up Wireless Market Competition and Revenue
The Indian government held auctions in 2010 to license 3G and BWA spectrum for wireless services. The auctions used a new format where bidders competed for generic blocks of spectrum in specific areas. However, some design issues may have reduced the efficiency of the auction process. The goal was to promote competition in the 3G market and maximize revenue for the government. With nine 2G companies bidding for limited licenses, the competitive structure of the 3G market will be different. Despite some challenges, the auctions likely generated high revenues.