License Bidding

In securing operating licenses, telecom, mobile and multimedia service carriers frequently face competitive proceedings in the form of auctions, "beauty contests" or a combination of both. The objective is to win the license without paying excessive fees or making unsustainable commitments.

In the 3G sphere, for example, we have advised an incumbent bidder in Italy's spectrum auction and licensing process. Our contributions included training the bid team, supplying and customizing auction tracking software, conducting two mock auctions (during which another incumbent dropped out of the auction, as later proved to happen in the actual auction), and providing competitive analysis of the other expected bidders. Our 3G client won one of the licenses for approximately $2.2 billion, the lowest price paid among the five successful bidders.

Overall, we have assisted clients with more than fifty license bids and spectrum auctions across more than a dozen countries in Asia, Europe, the Middle East, and North and South America. About three-quarters of these have been successful. In the process, our contribution has included one or more (usually more) of the following:

• Identification and screening of partners
• Subscriber and revenue forecasts
• Auction process and bidding advice
• Mock auction management and software provision
• Tariff schedules for multiple service plans
• Survey design and implementation
• Financial modeling
• Advice on government relations
• Marketing plan
• Analysis of competitors, including expected bid levels
• Regulatory analysis and review
• Review of technical plans
• Technology choice study
• Bid book review and/or outside critique
• Executive summary preparation
• Licensing policy study.

We have also worked for governments on the development of licensing tenders (for example, PCS in Sweden), the evaluation of license bids (international services in Israel), or as overall licensing advisors (cable TV in the U.S.). The breadth and depth of our license bidding experience is unique and can be applied in virtually any jurisdiction on a worldwide basis.