We supported an MNO during the Isle of Man’s first spectrum auction in the 700MHz and 3.5GHz bands, assisting with consultation responses and bid strategy

The problem

• The Isle of Man was preparing to hold its first ever auction of radio spectrum in the 700MHz and 3.5GHz bands
• A mobile network operator sought Analysys Mason’s assistance in responding to regulatory consultations on the auction design and developing its bid strategy

The solution

• We analysed the proposed auction design and noted several areas in which the auction might lead to an inefficient outcome, or one otherwise disadvantageous to our client
• We also analysed the derivation of the reserve prices and made suggestions, which resulted in a lower reserve price outcome
• We summarised the issues and drafted text for our client to use in responding to the regulator’s consultations
• We then helped our client to prepare for the auction, analysing possible outcomes under different potential bid strategies and recommended an optimal bid strategy
• We assisted our client in the mock auction held by the regulator and in formulating its bids during the live auction

Figure: Analysis of bidding strategies in supplementary bid round

The result

• Our client was able to acquire its targeted package of spectrum at a low price