Spectrum Valuation and Auctions

Frequency waves in the night sky

Hundreds of millions and in some cases billions of Dollars are being paid by telecom network operators for frequency spectrum licenses, often in competitive auctions, with huge differences in valuation of the same spectrum in different countries and even between participants in the same auction. Spectrum valuation is a complex challenge which, if poorly handled, will lead to unrealistically low and high prices being asked and paid, resulting in negative outcomes on both sides.
Overpaying for spectrum can set an operator’ back for years in terms of profitability and opportunity cost. But not getting the necessary spectrum to support new technologies such as 5G could also prove disastrous for an operator.

We have seen in time past that Governments/regulators tried to maximise revenue from spectrum auctions. It is understandable from their perspectives and in some cases, rightly so. But overpricing spectrum can lead to embarrassment when no bids are received, and overcharging for spectrum limits the operators’ ability to invest in network infrastructure and innovate.

This training course aims to give both the buyers and sellers of spectrum, i.e. network operators and governments/ regulatory authorities, the tools to determine the value of spectrum in their specific market conditions, and to prepare for successful auctions or alternative methods of spectrum allocation

  • Mobile network operators and wireless ISPs preparing for spectrum acquisition or M&A
  • Telecom regulatory authorities and government ministries preparing for spectrum licensing/auctions
  • Financial institutions or advisors on spectrum transactions or M&A
  • Executive Management of the above-mentioned organisations
  • Staff responsible for strategic planning, business development and financial modelling
  • Spectrum planning and management decision makers
Instructor-Led Training
[Classroom: 4 days / LIVE Virtual*: 28 hours]
 
*Note:
 
  • A minimum of 5 or more participants are required for a company-based LIVE Virtual course to commence
  • LIVE Virtual courses can be conducted for 5 hours or 7 hours daily. Please note that the number of training days will be extended if you opt for 5 hours daily.

The goal of this training is to help mobile/wireless network operators and regulatory authorities realistically assess the value of frequency spectrum in their specific market and operating conditions, in order to optimally prepare for spectrum auctions or other forms of spectrum licensing.

It explains the different spectrum valuation methods, including benchmarking and discounted cash flow (DCF) analysis, and provides step-by-step guidance for using both methods which are backed by real-life practical examples.

The course also explains the different types of auction practised globally in various markets, and examine their attributes and mechanisms, pros and cons; thereby helping regulators to decide which auction format to use and enabling operators to develop the right bidding strategy for the chosen format.

  1.   Spectrum Demand for Mobile / Wireless Communications, from 2G to 5G
  2.   Characteristics and Value of Different Frequency Bands
  3.   Spectrum Refarming
  4.   Spectrum Valuation for Specific Market and Operating Conditions
  5.   Benchmarking
  6.   GDP, ARPU, Market Share and Other Relevant Factors
  7.   Discounted Cash Flow (DCF) Method
  8.   Coverage Obligations and Other License Conditions
  9.   Different Licensing Mechanisms: “Beauty Contest”, Auctions, Hybrids
  10.   Different Auction Formats: Single vs. Multiple Rounds, 1st vs. 2nd price, Package Bidding etc.
  11.   Reserve Prices
  12.   Spectrum Caps and Set-Asides
  13.   Consultation Process
  14.   Mock Auctions Transition and Transformation
  15.   Managing QoS (Quality of Service)
  16.   Managing Contract Migration and Handover
  17.   Synopsis
  18.   What is a KPI?
  19.   First Understand All the Rules
  20.   Collaborate NOT Compete – Understand Yours and Other Department Performance Indicators
  21.   Transformation – Align Mate and Align Team Conceptualization
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Duration: Classroom: 4 days / LIVE Virtual: 28 hours
Delivery Format: Virtual Training

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