SYNERGIES IN WIRELESS TELEPHONY - EVIDENCE FROM THE BROAD-BAND PCS AUCTIONS

We examine bid data from the first two broadband PCS spectrum auctions for evidence of value synergies. First, toe estimate a benchmark regr ession for the determinants of final auction prices. Then, we include variables reflecting the extent to which bidders ultimately won or alr eady owned the adjacent wireless properties. Consistent with geographi c synergies il I an ascending-bid auction, pl ices were higher when I the highest losing bidder had adjacent licenses. The footprints of win ning bidders suggest that they were often successful in realizing thes e synergies.