2. Governments are supposed to protect the public interest by ensuring that local broadcasters are not ousted by national ones, and by seeing that broadcasting services remain diverse and universally available. Otherwise a monopolist could by all the spectrum for his own self-aggrandisement.
3. If the government wants to stop ham radio operators being driven off the air, then let it reserve a small band for radio hams, or any other deserving broadcaster. Planning (zoning) laws work for land; why not airwaves ? Anti-trust and planning laws could quash monopolies even after licences had been sold, and public-service duties of broadcasters could be written into the licences, just as covenants are placed on property transactions.
3. Auctioning licences would not prevent new services getting on to the air. Quite the reverse. If, say, a computer company wants to make a wireless computer that would need no telephone line to talk to others; it will need a part of the spectrum. Let it buy it rather than wait to be allocated it. Perhaps it could get by with only part of a band: good, let it sell the rest. A market in airwave-space will encourage users to be sparing in their use of the spectrum by compressing their signals as much as technology allows.