Spectrum Value and Auction Bidding Strategy Workshop
Our spectrum value and auction workshops are practical, interactive and designed to provide the knowledge and skills to prepare for a spectrum auction. The workshops can be tailored to specific markets, operators and auctions where participants will benefit from a number of interactive mock auctions.
As so much is put at risk in a spectrum auction it is essential for operators to develop the skills and knowledge to manage these risks effectively.
The importance of understanding spectrum value and auction strategy
Most regulators now adopt some form of auction with which to allocate radio spectrum. Regulators are adopting ever more complex auction designs (e.g. a Combinatorial Clock Auction) as they seek to balance a range of policy issues as well as revenue generation within the same process.
The result is that most operators do not have the academic expertise to apply Game Theory to the auction rules in order to identify their optimal bidding strategy thus creating significant business risk.
Prior to developing a bidding strategy operators must also value the spectrum being offered, both as individual lots but also in combinations or packages. In some auctions the number of block combinations can reach into the millions and with spectrum prices reaching into the tens and hundreds of millions of dollars and in some larger markets, billions, accurate spectrum valuations is critical to auction success. However, valuing spectrum is also a highly specialised task and another skill that operators do not always have.
What do participants have to do?
Preparing for a spectrum auction should start early. Mobile operators should seek to influence the regulator, either informally or formally, through the consultation process, to influence spectrum packaging, auction rules and reserve prices in their favour. Once the auction rules are published the spectrum offered must be valued, bid limits determined and an auction bidding strategy and auction war room protocols established.
Stefan ZehleT: +44 7974 356 258
Graham FriendT: +41 79 855 1354