Abstract

We study the effects on the mobile telecommunications market from three specific spectrum policies: the presence of a secondary market, a technological neutrality approach, and the possibility of sharing agreements among operators. We find that when these policies are jointly adopted, investment is 35.9% larger than when that is not the case. After two years, network coverage and service penetration can be increased by 9.8% and 0.9%, respectively, and prices can be reduced by 5.8%. When considering an extended period, dynamic effects result in enhanced outcomes. The findings support policies that promote flexible approaches towards spectrum management for mobile development.

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