![]() ![]() While this method raises billions of dollars for the government, there is concern that smaller companies may be priced out of the market and therefore rendered unable to compete with large firms. ![]() An example of this practice was the 700 MHz auction in 2008. This allows for a more efficient bidding process, and keeps bands being auctioned at the end of the auction from being over or under valued. The FCC, when auctioning multiple bands, auctions them simultaneously. The FCC spectrum auctions have multiple rounds of bidding, as opposed to each party submitting one sealed bid. The United States currently auctions off bands that then become the property of purchaser. Due to the differences in the amount of data each band can transmit and the clarity of the signal, auctions allow the more desirable bands to sell for more. Some economists believe based on Auction Theory, auctions are the most efficient method of allocating resources. The FCC generally uses auctions to allocate bandwidth between companies. Bands that are particularly fast or that have long range are of critical importance for companies that intend to operate a business involving wireless communications. Different bands of spectrum are able to transmit more data than others, and some bands of the spectrum transmit a clearer signal than others. The FCC did this recently, when it shifted the location of television broadcasting on the spectrum in order to open up more space for mobile data. In the United States, the Federal Communications Commission or FCC has the responsibility of allocating discrete portions of the spectrum, or bands, to various industries. The radio spectrum is a finite resource, which means there is great need for an effective allocation process. ![]() JSTOR ( December 2009) ( Learn how and when to remove this template message)īandwidth allocation is the process of assigning radio frequencies to different applications.Unsourced material may be challenged and removed.įind sources: "Bandwidth allocation" – news Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification. ![]()
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