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Does Spectrum Auction Truely Reflects Market Price?

Only 6 out of 22 circles in the 2016 spectrum auction for the 1800 MHz band had prices that can be considered a reliable reference for future auctions, revealing flaws in relying on previous auction prices as market benchmarks.

Parag Kar by Parag Kar
22 Oct, 2018 - Updated On 22 Nov, 2024
in Spectrum Auctions
Reading Time: 16 mins read
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It is important to answer this question since this number gets indexed as the reserve price for the next round of auction. To analyse the sanctity of the auction prices we have to test these numbers against demand and supply changes, i.e in case the reserve prices in the last auctions were to be raised further, would the demand had decreased? Also, whether the quantity offered was sufficient for bidders to bid for the prices to get tested. Let us do this circle by circle for the 2016 spectrum auction. I will use the 1800 MHz band as reference. Note in this analysis I have chosen to ignore unliberlized spectrum, as this will expire in next few years.

1. AP

The dashboard for the 2016 spectrum auction is shown as below.

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Tags: 1800 MHz BandAuction DesignMarket ReferenceReserve Price AnalysisSpectrum AuctionSpectrum ValuationTelecom IndustryTelecom PolicyTelecom SpectrumTRAI
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