Spectrum Allocation Methods : Studying Allocation Through Auctions

Auctions have been used as a mechanism of selling goods and services for thousands of years.The earliest example of auctions can be traced back to AD 195 when Roman Empire was auctioned off to Julianus. There are numerous examples of Auctions in our daily life but auctions caught the imagination of economists, governments and common people alike when spectrum rights were auctioned by FCC in 1994 in the US. Prior to using auctions for spectrum allocation other methods like administrative process, lottery and first-come-first serve were widely used. Since FCC's auction a number of countries switched to auctions for spectrum allocation because of there comparative advantages over other methods. This paper critically analysis the pros and cons of different methods used in spectrum allocation. The method of using Simultaneous Ascending Auctions in allocation of spectrum is discussed along with the advantages that may accrue from this method