Pre-Conference Workshop

Pre-Conference Workshop - A Step by Step Guide to Spectrum Valuation and Auctions

All delegates who registered to attend the main conference also have the option of attending this full day interactive workshop, co-ordinated by Coleago Consulting and taking place on 13th May (the day before the main conference).

More information

The workshop comprises two sessions. The morning session provides a practical, step-by-step guide to valuing spectrum for spectrum auctions, spectrum renewal or in negotiating Administered Incentive Pricing. This session will also include a discussion of the practical implications of network sharing and its impact on spectrum valuation. The afternoon explores 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 begins by explaining how to establish the appropriate framework with which to value spectrum. The framework discussion will cover conceptual issues such as:

- the first principles of spectrum valuation and how spectrum values for both the operator and its competitors relate to auction bidding strategy;
- approaches to valuation;
- scenario planning and business case specification such as the base case as well as identifying the optimal “with spectrum” scenario;
- identifying sources of spectrum value.

The valuation workshop will also look at the implications of network sharing deals on spectrum valuation as well as the practical issues that might need to be addressed before forming a netco or bidding consortium in a spectrum auction.

This discussion also includes 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 proceeds to explore the practical issues associated with preparing valuations such as project team structure, governance and establishing Excel modelling tools. In the remaining steps, we offer 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 as well as how best to present and communicate the key conclusions. The workshop concludes with a spectrum valuation clinic (which can continue over lunch) where participants have the opportunity to highlight some of the specific challenges they face and Coleago will provide advice on how best to confront those challenges.

Auction design and auction bidding strategy

The second part of the workshop begins 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 to be covered include:

- 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 will be followed by mock SMRA and CCA format auctions where participants will 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. We will then conclude the mock auction with analysis 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: Introduction 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 bidding strategy and mock spectrum auctions

13.30 - 14.15 Session 3: Preparing for a Spectrum Auction – bidding strategy

14.15 - 14.30 Afternoon Break

14:30 - 16:30 Practical Session: Mock spectrum auctions
This session will offer participants the chance to get hands on experience bidding in SMRA and CCA type mock auctions for an operator in a fictitious country.

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

17:00 End of Workshop