Airwaves of Innovation: Milgrom & Kwerel on the Past and Future of Spectrum Auctions

The journey to implementing spectrum auctions was not without its challenges. Evan Kwerel shed light on the initial resistance, particularly from the broadcasting industry and legislators. Concerns about market concentration and the potential costs of spectrum use were at the forefront of the debate. Despite these hurdles, the need for government revenue and the inefficiency of the existing system for cellular licenses were catalysts for change. Paul Milgrom provided a fascinating comparison between the United States and other countries. He noted the fragmented nature of the industry abroad and the various tactics used to suppress auction prices. In contrast, the U.S. wireless companies were less resistant, which played a part in the smoother implementation of spectrum auctions stateside.