Spectrum Valuation

The objective of any investment decision is to increase or at least maintain shareholder value. Operators spend very significant sums to acquire spectrum and the subsequent technology roll-out. No board would accept to sign off capital expenditure of this magnitude without rigorous investment appraisal.

Therefore, prior to bidding in a spectrum auction you need to answer the question how much is each block or combinations of blocks worth to us? This allows you set bid limits.

Valuing spectrum is a complex process. In fact what needs to be valued is each block on offer as well as combinations of blocks, regardless of whether you are facing a Simple Multi-Round Auction (SMRA) or Combinatorial Clock Auction (CCA). This means there is not one valuation point but several valuation points. Once multiple scenarios are taken into account hundreds of valuation points have to be handled.

Coleago’s structured spectrum valuation process under a range of technology, timing and alternative spectrum scenarios would give your board confidence in making the investment decision associated with acquiring the spectrum and subsequent technology roll-out.

Coleago’s consultants have been involved in spectrum valuation for over 20 years and have developed a methodology and approach which provides clients with great confidence when approaching a forthcoming spectrum auction. Our spectrum valuation process has been used successfully in over 40 spectrum awards.

Please download Coleago’s spectrum report which highlights some of the issues in surrounding spectrum valuation. Feel free to call us to receive an indicative proposal how Coleago would support you to value the spectrum in the context of an auction, licence expiry or refarming or to arrange a spectrum auction workshop.

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