Spectrum auctions show how decision-makers can make the right calls

Spectrum auctions, the process by which a government uses an auction mechanism to allocate rights to transmit signals over specific bands of the electromagnetic spectrum, have come to form an increasingly important part of the regulator’s toolkit over the last two decades. Geoffrey Myers explains why the auction of radio spectrum licences for mobile phone networks has played a critical role in economic modernisation in the UK and beyond, and looks at the wider lessons it holds for developing more effective regulation.