The Theoretical and Empirical Relationship Between Spectrum Concentration and Downstream Service Quality

This article investigates the impact of spectrum concentration on the quality of wireless services. The article develops a theoretical model of wireless service competition, examining how spectrum endowments affect the quality of service offered to consumers, particularly download speeds. The findings suggest that while spectrum concentration can enhance efficiency, it also reduces service providers’ incentives to compete. The article employs an empirical model to assess the relationship between spectrum concentration and service quality. These insights inform the ongoing policy debate on the optimal level of spectrum concentration to balance service quality and market competition.