Why We Should Stop Worrying and Learn to Love Spectrum Windfalls
Many attempts to increase the flexibility of wireless spectrum rights meet objections that the method of reallocation will result in a windfall for corporate license holders. Far from being objectionable, however, allowing windfalls in spectrum reallocation creates virtuous incentives. Past restrictions on the supply of flexible-use rights to the spectrum have resulted in a rigid system, which is not in the public interest because the most productive uses of the spectrum change rapidly.