Bids for the UMTS system: an empirical evaluation of the Italian case

This article surveys the main economic and technical features of the UMTS system. Once defined the general legal scheme in which European countries operate, the article focuses on the Italian case, analysing the legal background regulating the license assignment, and providing an empirical evaluation of the bid held in November 2000. Applying a theoretical model, we highlight and estimate some of the key variables of the problem, such as the parties' bargaining power, the maximum willingness to pay, the optimal time length of the concession.