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Spectrum Auctions: Lessons from Around the World

by KB Enterprises LLC

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This overview of spectrum auctions was given by Karen Wrege of KB Enterprises to the South Africa Connect Public Seminar on 21st October 2009.

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Spectrum Auctions: Lessons from Around the World Presentation Transcript

Spectrum Auctions Lessons Learned From Around the World
Karen Wrege
KB Enterprises LLC
21 October 2009
kwrege@KBspectrum.comwww.KBspectrum.com

Creating A Competitive Telecom Marketplace
Allocation of Spectrum, Service Rules
Assignment of Licenses
Enforcement

Approaches to Spectrum Management
Command
And Control
“Property-like” Rights with Flexibility and Trading

Regulator Goals in Spectrum Assignment
Consumer Welfare
Innovation
Social Policies
Competition

Typical Spectrum Assignment Mechanisms
First Come, First Served
“lite” licensing
Beauty Contests
Unlicensed
Auctions

The Problems with Beauty Pageants
Challenge to create clear, fair and objective comparative criteria
Long administrative process
Often subject to challenges by losers

The Importance of Transparency
Allow for input into the process far enough in advance to take action
Clearly set out technical specifications, rules, procedures and policy
Allow sufficient time for bidders to prepare

The Importance of Fairness
Know the market
Know your policy goals
Find ways to promote a level playing field

Canada: Removing Hurdles for New Entrants
Canada is, at best, a duopoly
For AWS auction, Canada set-aside spectrum for new entrants
Spectrum was coupled with mandatory roaming policies

Without Transparency ….
Auctions and the Wrong Kind of Gavel
Legal delays cause deployment delays
A transparent and fair process reduces potential of court delays
Examples :
Brazil
Germany

Europe’s BIG Auctions
Big revenue doesn’t always mean a big success.
High prices paid in Germany and UK caused concern about ability to build out.
Appears to be a success ultimately , but high prices coupled with bad markets delayed deployment.

ThingsTo Avoid
Untested methods
Moving too fast
Not having clear policy goals and knowing the market.

Summary