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