Foreign Reactions to U.S. Auctions: Implications for U.S. Bidders in Foreign Countries

In this study, we examine the implications of FCC Auctions for U.S. companies in foreign countries. We show that U.S. auctions will have the most detrimental effect on U.S. companies planning to serve the most attractive foreign markets. For moderately attractive markets, establishing a joint venture with a firm in the target country is crucial. The least attractive markets can become more attractive when their neighboring countries are served by U.S. companies. We discuss the foreign retaliation upon U.S. telecom auctions, U.S. companies' responses, the pressure from the U.S. Congress on the FCC, and FCC's strategies. We conclude by analyzing the foreign reactions to U.S. auctions, these reactions’ implications on the FCC, and the offsetting trends. Finally, we recommend some strategies to FCC.