Maximum Impact for Minimum Subsidy: Reverse Auctions for Universal Access in Chile and India

摘要

U.S. government funding for universal service and broadband support programs could be quicker and more efficient. To improve efficiency and speed in delivering subsidies, several countries successfully use reverse or minimum subsidy auctions to support universal service programs. This paper discusses the implementation of such auctions in the last 15 years in Chile and India. The programs ranged from rural public telephones to wireless broadband networks. While there can be drawbacks to such auctions, the advantages are that they can be quicker and more transparent than other approaches.