| Abstract: | Currently, the FCC assigns radio licences after making a determination of the public interest. Conflicting licence applications are resolved through comparative hearings. This mechanism is cumbersome and unreliable. This article analyses three alternatives: Increasing the available spectrum; an auction; or, lottery of radio licences. The analysis deals specifically with the Multipoint Distribution Service (MDS). The analysis suggests that increasing the spectrum allocation will create more assignments than will be demanded by MDS. Rough calculations suggest that auctions offer a more efficient selection mechanism. Lotteries with resale of the license are better than hearings, but not as good as auctions. |
