Services & Practices > Spectrum Auctions & Fees
We have completed spectrum and fee cases across more than 30 countries for operators, governments and investment entities. The cases, examples below, have involved auction bidder training and advising; projection of winning auction prices and competitor behavior, evaluation of spectrum fee-setting methods, and development of frameworks for reverse auctions.
Kalba International specializes in unexpected developments that can occur during auctions, having examined these across a wide range of cases. We also bring experience in spectrum management functions and licensing terms and conditions.
Combinatorial Clock Auction 2500 Band
In this auction in Canada we advised a bidder during the live auction when limited information was available between rounds on the 300+ regional lots being auctioned other than the level of demand for paired (FDD) and unpaired (TDD) blocks. The client, one of ten bidders, acquired spectrum in all its key regions at the lowest or near-lowest prices.
Prior to the live auction we assisted with analysis of the competing bidders, their objectives, financial/strategic positions and bidding patterns in prior auctions as well as provided a valuation of the spectrum using alternative approaches.
Spectrum Auction Training and Support
We have trained auction bidding teams using mock auctions, provided auction related valuations and business models, and advised auction bidders during the course of auctions across Asia, Europe and the Americas. In all cases our clients were successful, winning the sole spectrum lot in Brazil (10 bidders) and Israel (3 bidders) and at the lowest or lower than average prices where multiple spectrum lots were awarded (Canada, Hong Kong, Italy, Taiwan, Thailand).
Impact of Increased Spectrum Fees
For a major incumbent mobile operator we prepared an assessment of a government proposal to dramatically increase annual spectrum fees, demonstrating that the operators impacted by the proposal were already paying among the highest fees across OECD countries as well as demonstrating the shortcomings of the methodologies being considered for assessing the new fees. The government has withdrawn the proposal.
Seminar on Disruptive Auction Events
We have provided a seminar in unexpected events that can disrupt auctions and which are not generally covered by most game theory approaches. As such events occur frequently, they prepare auction bidders or managers for unanticipated developments and offer takeaways on how to deal with these situations.
The case studies we present include unanticipated withdrawals of bidders, security breaches, serial bidding (where a bid is placed to scare off competitors from a future auction), and government and market announcements affecting the value of auction bids. All the cases are drawn from auctions on which we have worked or from case studies we have prepared.