Criterion Releases Paper Criticizing Frontline’s Proposal for the 700 MHz Auction

June 13, 2007

Criterion President Hal Singer and economists Gerald Faulhaber and Robert Hahn replied to the comments of Andzeg Skrzypacz and Robert Wilson on behalf of Frontline Wireless in the Federal Communications Commission's 700 MHz Auction proceeding. Frontline's economists primarily advocate two restrictions on the auction that would significantly limit the number of bidders for the E Block license, one of several blocks for sale in the auction.

Singer, Faulhaber, and Hahn explain that the proposed restrictions on the auction would likely insulate firms, such as Frontline, from competition in the auction. Such insulation may result in a windfall for Frontline, but it is unlikely to be in the best interests of the American consumer. They conclude that the FCC should send a clear signal to industry participants that it rejects any form of rent-seeking behavior by rejecting Frontline's proposal.

To read the paper click here.