ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Value of 2G Spectrum in India

The granting of universal access service licences in 2007 at a price equal to that revealed by the spectrum auctions of 2001 has proved very controversial. An economic model for spectrum pricing is developed in this article, to evaluate the various claims made in this debate. The estimation exercise shows that the value of spectrum was much higher than the fees charged, even allowing for the cost of capital.

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