Spectrum Auction Bid Strategy

Coleago regularly advises clients on spectrum valuation yet a spectrum valuation only provides an upper limit on how much to potentially bid. In order to create value clients must acquire that spectrum as cheaply as possible and this is the role of auction bid strategy. Spectrum auctions have increased dramatically in terms of complexity moving away from single round sealed bids to simultaneous multi round (SMR) auctions, where different spectrum blocks are auctioned simultaneously.

This means formulating a robust bidding strategy is becoming ever more challenging especially because of the interdependencies between different spectrum blocks. Blocks could be complements, weak or strong substitutes and under certain circumstances there is a substantial risk of acquiring stranded spectrum blocks.  This is particularly the case where auctions do not allow operators to state minimum acceptable aggregate spectrum limits.

Coleago combines the application of game theory with simulations in order to develop an optimal bid strategy for a client and then develops auction support tools to ensure the strategy can be effectively implemented during the auction.

Please call Coleago to learn more about bid strategy or to arrange a spectrum auction workshop.

If you would like to find out more about the major challenges and issues confronting telecoms companies and regulators please download the Spectrum Report from this page.

Main contacts:

Graham Friend
Managing Director
Tel: +41 79 855 1354
graham.friend@coleago.com

Scott McKenzie
Director
Tel: +44 7825 294 576
scott.mckenzie@coleago.com

Downloads

Spectrum Report Coleago.pdf