Spectrum Valuations, Auctions & Licence Applications

Spectrum Valuations


Developing spectrum strategy is becoming increasingly complex as licensing, technology, traffic and competitive dynamics are creating as yet unprecedented situations for operators and regulators. Key issues include:

  • Spectrum Refarming
  • Spectrum Redistribution
  • New Spectrum Auctions
  • Spectrum Trading
  • Spectrum Renewal
  • Introduction of LTE
  • Multiple Technologies
  • Mobile Broadband Demand

Coleago has confronted all of these issues across a range of markets and is ideally placed to advise clients on their optimal spectrum strategy. Our advice ranges across a range of spectrum policy issues and our services cover initial lobbying strategy through spectrum valuation (including the modelling of mobile broadband demand and technology strategy) to the development of auction bid strategy.  The complexity of the problem and large capex implications require comprehensive planning and buy-in at board level, requiring plenty of time ahead of any upcoming auction.

 

Spectrum Strategy

 

In a spectrum auction an operator has to find an answer to three fundamental questions:

  • How much spectrum do we need in different bands? An assessment of spectrum need in the context of the growth in demand, notably mobile broadband and taking into account overall strategy, for example traffic offload through WiFi or Femto cells.
  • How much is each block worth, i.e. what is the most we should bid for it? Valuing each spectrum block to set the bid limit for the auction.
  • How do we obtain the spectrum as cheaply as possible? The role of bid strategy to ensure the spectrum is obtained for less than the bid limit and at the lowest possible price. Depending on the auction format there may be an opportunity to influence the outcome and avoid negative effects such as aggregation risk (e.g. be stranded with unwanted blocks). This is addressed by examining the auction rules and developing a bid strategy which will be tested through simulations and mock auctions.

If you would like to find out more about the major challenges and issues confronting telecoms companies and regulators please contact Graham or Stefan for our Spectrum Valuation and Auction Preparation Checklist and Spectrum Issues Report.


Contacts

Stefan Zehle

T: +44 7974 356 258
E: stefan.zehle@coleago.com

Graham Friend

T: +41 79 855 1354
E: graham.friend@coleago.com

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