Industry Canada issued its Consultation on the Licensing Framework for the 700 MHz Band, proposing the use of a Combinatorial Clock Auction (CCA) format to replace the Simultaneous Multiple Round Ascending that has been used for 5 of the 6 auctions held to date.
The proposed CCA format has many advantages. The exposure risk is eliminated, anti-competitive behaviour is reduced, substitution among similar licences is enhanced and the auction duration will likely be reduced.
The proposed switch to a new auction format appears to be a recognition by Industry Canada that there were problems with the last format, as the incumbent carriers had charged:
The use of a set-aside can also impair the auction process. As Rogers, Bell and TELUS all illustrated, the set-aside created gaming opportunities that were exploited by almost all the new entrants, removing hundreds of millions of dollars from the wireless industry.
The department will hold an information session for potential bidders on May 30 (registration required by May 14). The session will be held in Ottawa, but it will also be webcast.
And it will certainly be a source of discussion and debate at The 2012 Canadian Telecom Summit on June 4-6 in Toronto. Have you registered yet?