The Federal Communications Commission held its first auction of radio
spectrum at the Nationwide Narrowband PCS Auction in July 1994. The si
multaneous multiple-round auction, which lasted five days, was an asce
nding bid auction in which all licenses were offered simultaneously. T
his paper describes the auction rules and how bidders prepared for the
auction. The full history of bidding is presented. Several questions
for auction theory are discussed. In the end, the government collected
$617 million for ten licenses. The auction was viewed by all as a hug
e success-an excellent example of bringing economic theory to bear on
practical problems of allocating scarce resources.