Of course hastily lifting the restrictions would be a bad idea. The correct approach would be to lift regulations at a pace fast enough that telcos could keep up with decreased regulatory protection through vigorous investment in new hardware. Sticking with spectrum auctions until the old equipment falls apart or telecom companies replace it out of the goodness of their hearts is a terrible idea.
At which point we are back to the scarcity not being artificial. Just because it is the rate of telecom investment in your view doesn't make it "artificial".
