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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 Learned From
Around the WorldKaren Wrege
KB Enterprises LLC21 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
“Property-like” Rights with
Flexibility and Trading
Command And Control
Regulator Goals in Spectrum Assignment
Consumer Welfare Innovation
Social Policies
Competition
Typical Spectrum Assignment Mechanisms
Beauty Contests
Auctions
Unlicensed
First Come, First
Served“lite”
licensing
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 marketKnow 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 ….
Legal delays cause deployment
delays
A transparent and fair process
reduces potential of court delays
Examples : Brazil
Germany
Auctions and the Wrong Kind of Gavel
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
Recommended