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Pre-Conference Workshop: A Practical Guide to Spectrum Valuation and Auctions

Workshop participants Organised in partnership with Coleago Consulting Workshop participants

All delegates who registered to attend the main conference also had the option of attending the full day interactive workshop, co-ordinated by Coleago Consulting.

 

About the workshop

 

The workshop comprised two distinct sessions. The morning session provided a practical, step-by-step guide to valuing spectrum for spectrum auctions, spectrum renewal or in negotiating Administered Incentive Pricing. The afternoon explored the issues and challenges associated with auction design and developing auction bidding strategy.

 

Step-by-step guide to valuing spectrum

The guide to valuing spectrum began by explaining how to establish the appropriate framework with which to value spectrum. The framework discussion covered conceptual issues such as:

 

• The first principles of spectrum valuation and how spectrum values for both the operators and regulators relate to auction design and bidding strategy;

• Approaches to valuation;

• Scenario planning and business case specification such as the reference or base case as well as identifying the optimal “with spectrum” scenario;

• Identifying sources of spectrum value.

 

This discussion also included advice on how to prepare for package based auctions (e.g. the Combinatorial Clock Auction format) where the number of potential valuations can be counted in the hundreds, thousands or even millions.

 

The workshop then proceeded to explore the practical issues associated with implementing the framework such as project team structure, governance and establishing Excel modelling tools. In the remaining steps the Coleago team offered advice and examples of how to develop and benchmark the assumptions which will be the key drivers of spectrum value; the critical factors to consider when reviewing the resulting business plans and spectrum values and how best to present and communicate the key conclusions. The workshop concluded with a spectrum valuation clinic where participants had the opportunity to highlight some of the specific challenges they face and the Coleago team provided advice on how best to confront those challenges.

 

Auction design and auction bidding strategy

The workshop began with a practical session on present day spectrum auction theory and why governments and their auction advisors have chosen some of the more common auction formats that are presently in use such as the Simultaneous Multi-Round Ascending (SMRA) and Combinatorial Clock Auction (CCA) formats. Areas covered included:

 

• Principles of auction design including single round and ascending auctions as well as first and second price rules, activity rules, spectrum caps and reserve prices

• How to prepare for a spectrum auction including setting objectives and bid limits, developing bid strategy, development of software bid tools and preparing the bid team including mock auctions. We will also discuss some of the particular challenges with more complex auction formats such as CCA.

 

The theory session was followed by a mock SMRA auction where participants had hands on experience bidding in a simulated spectrum auction in a fictitious country. Up to five teams were involved in the bidding and each had to execute their particular bid strategy up to their maximum bid limits. The practical session was then concluded with analysis of the bidding strategies and of the outcomes.

 

Agenda

09:30 - 10:00    Registration and Welcome Coffee

Morning Session: A Step-by-Step Guide to Spectrum Valuation

10.00 - 11.00 Session 1: Introductions and Spectrum Developments


11.00 - 11.15 Morning Break


11.15 - 12.30 Session 2: Valuing Spectrum


12.30 - 13.30 Lunch and Spectrum Valuation Clinic
An opportunity for participants to speak to the Coleago team on a one-to-one or group basis to highlight some of the specific challenges they face and receive advice on how best to confront those challenges.

Afternoon Session: Auction design and auction bidding strategy


13.30 - 14.15 Session 3: Preparing for a Spectrum Auction


14.15 - 14.30 Afternoon Break

14:30 - 16:30    Practical Session: Mock Auction
This session will offer participants the chance to get hands on experience bidding in a simulated spectrum auction in a fictitious country. Up to five teams will be involved in the bidding and each will have to execute their particular bid strategy up to their maximum bid limits.

16:30 - 17:00    Session 5: Review of Results and Summary

17:00        End of Workshop

Logistics

When

Mon 24 June, 2013 08.30 to
Wed 26 June, 2013 17.30

GMT

 

Where

Management Centre Europe

Rue de l'Aqueduc 118
Brussels 1050
Belgium

Google location map

 

Downloads

Sponsorship Prospectus

 

 

Forum Europe