Learning from failed auctions

Newspaper reports suggest that the auction for 2G spectrum, starting on November 12, will probably fail and end within a couple of rounds of bidding. The government then will miss its ambitious revenue target of R40,000 crore. This will hurt the credibility of several agencies such as the Telecom Regulatory Authority of India (Trai), the Department of Telecommunications (DoT) and, pertinently, the Comptroller and Auditor General of India (CAG). This will also be a serious setback for India’s already-struggling broadband markets.

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