Private Property, Economic Efficiency, and Spectrum Policy in the Wake of the C Block Auction

In the original spectrum auctions of Personal Communications Services, the FCC designated a portion of the spectrum for woman and minority-owned small businesses (the C block). The Supreme Court’s decision in Adarand v. Pena caused the FCC to redesign the auction with the result that many bidders overvalued this spectrum. Due to this overvaluation, many bidders could not meet their obligations to the FCC. This Note analyzes FCC auction history, the FCC’s response to the original C block auction, how to fix these problems within the given congressional and FCC framework, and argues that the best solution would be to treat spectrum like private property