We provided end-to-end 5G spectrum auction support to a regulator of a developed market as part of the 2.1GHz spectrum award

Project experience | Spectrum


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The problem

  • A regulator in a developed country was preparing to reassign spectrum rights in the 2.1GHz band (primarily used for 3G) in a way that allowed service continuity and refarming for 5G
  • Analysys Mason was appointed by the regulator to conduct spectrum valuations, design the auction framework and support the auction process

The solution

  • We first made assumptions on some key valuation parameters, including wireless market development, competitive market dynamics, future spectrum scenarios, operator deployment scenarios, and 5G network equipment costs
  • We then developed an in-depth spectrum valuation model to calculate the difference in cash flows between various scenarios for each of the operators
  • Based on the valuation model results, as well as spectrum pricing benchmarks in other countries, we made recommendations on the reserve price
  • We partnered with DotEcon to make recommendations on the spectrum auction framework, including the amount of spectrum to set aside for legacy services, the potential need for spectrum caps and the candidate auction formats to reduce aggregation risks
  • Finally, we provided support for the actual auction, which involved developing auction rules and bidding procedures; providing materials, training and a platform for the auction; as well as conducting and managing the auction

Figure: Recommended reserve price range

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The result

  • We developed a reasonable range of valuations and provided an interpretation of these results to help the client understand the value drivers
  • We facilitated the auction framework design process and helped to organise and manage the auction, which was successfully concluded

Our client, a regulator in a developed country was preparing to reassign spectrum rights in the 2.1GHz band. Analysys Mason was appointed by the regulator to conduct spectrum valuations, design the auction framework and support the auction process