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Allocative efficiency of the mobile industry in India and its implications for spectrum policy

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  • Prasad, Rohit
  • Sridhar, Varadharajan

Abstract

This paper outlines the various stages of spectrum policy in India and highlights the underlying principle of maximal usage of spectrum advocated in the policy. It argues that allocative efficiency is a more appropriate policy measure and illustrates the absence of allocative efficiency in the Indian mobile industry. Possible causes of allocative inefficiency including insufficient spectrum allocation per operator, underpricing of spectrum, and inefficient use of the radio access network infrastructure are highlighted. Corresponding policy implications and prescriptions are discussed.

Suggested Citation

  • Prasad, Rohit & Sridhar, Varadharajan, 2009. "Allocative efficiency of the mobile industry in India and its implications for spectrum policy," Telecommunications Policy, Elsevier, vol. 33(9), pages 521-533, October.
  • Handle: RePEc:eee:telpol:v:33:y:2009:i:9:p:521-533
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    Cited by:

    1. Rohit Prasad & Rupamanjari Ray, 2015. "The relation of traffic balance and network size: a case from the indian mobile industry," Netnomics, Springer, vol. 16(3), pages 149-167, December.
    2. Prasad, Rohit & Kathuria, Rajat, 2014. "The value of 1800MHz and 2100MHz spectrums in India and implications for auction design," Telecommunications Policy, Elsevier, vol. 38(3), pages 223-235.
    3. Sridhar, Varadharajan & Casey, Thomas & Hämmäinen, Heikki, 2013. "Flexible spectrum management for mobile broadband services: How does it vary across advanced and emerging markets?," Telecommunications Policy, Elsevier, vol. 37(2), pages 178-191.
    4. Sajal Ghosh & Rohit Prasad, 2012. "Telephone penetrations and economic growth: evidence from India," Netnomics, Springer, vol. 13(1), pages 25-43, April.

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