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V DOI:10.1145/2076450.2076458 viewpoints Gregory Rosston economic and Business Dimensions incentive auctions Reallocating valuable wireless spectrum can generate billions of dollars in revenue to the U.S. federal government while also benefiting consumers. he FeDeraL COMMUniCatiOnS T Commission (FCC) is charged with managing the wireless spectrum in the public interest. The U.S. Congress is considering legislation that would allow the FCC to conduct œincentive auctions  (Granted, it is difficult to think of an auction without incentives, but we seem to be stuck with the phrase for now.) The most likely use of such auctions would be to reallocate spectrum from lower value over-the-air television and satellite services to more highly valued general mobile wireless services. The Congressional Budget Office (CBO) estimated that these auctions could generate $24 billion in revenue for the federal government. Reallocating the valuable spectrum resource could generate substantial benefits to consumers, yet, there is substantial debate. What is behind that debate? Mainly it is parties trying to position the auction so they can secure more of the value for themselves. coMM unicaTions of T h e acM Moving from command and control Prior to the mid-1990s, the FCC allocated spectrum for specific wireless services such

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Incentive auctions

Rosston, Gregory
Communications of the ACM , Volume 55 (2)
Association for Computing MachineryFeb 1, 2012

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