Auctions and Mobile Market Competition : Evidence from European 4G Auctions

This paper examines the effects of spectrum auctions on mobile market competition. A simple theoretical model suggests that bigger incumbents will acquire more spectrum in auction to pre-empt after-market competitors. We use novel data from European 4G spectrum auctions to present suggestive evidence of this effect. Exploiting cross-country differences in the timing of auctions, we find that low band (sub-1GHz) auctions increase concentration, increase prices, and reduce investment in 4G coverage