Other countries’ experiences ‘demonstrate convincingly that rever...
Other countries’ experiences “demonstrate convincingly that reverse auctions can bring down [universal service] subsidies,” Scott Wallsten of the Technology Policy Institute said in a paper. The FCC proposed using reverse auctions in one of three USF reform proceedings. Wallsten…
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studied reverse auctions in Australia, Chile, Colombia, India, Nepal and Peru. “Not all of the auctions were successful,” but reverse auctions “can be an effective tool for revealing information about the true cost of providing universal coverage,” Wallsten said. For example, in India’s first reverse auction, the incumbent won and the country failed to reduce the subsidy, he said. “India persisted, and its most recent auction ended with firms bidding for no subsidy and even to pay to provide service rather than to receive subsidies,” he said.