A week ago, I predicted the end of the the end of bidding in the AWS spectrum auction. I might as well have predicted the Leafs winning the Stanley Cup.
Just like the kids singing “This is the song that never ends” on a summer driving trip, it seems that this is the auction that never ends.
For the past week, we have watched bidding on a limited number of spectrum properties go back and forth, but continuing to hover in the neighbourhood of $4.2B. Out of 220 pieces of spectrum that are up for grabs, some rounds have seen activity on only one block. For a number of days, bidding changed by tens of thousands – rounding error when the total is measured in the billions.
Industry Canada is now running 15 auction rounds per day to try to bring this process to close.
In the meantime, uncertainty remains as a market overhang. Would-be new entrants can’t finalize their license approvals or get started building their networks, or finalizing their business plans.
Is something wrong with the auction design that is keeping us in limbo? Are there mechanical changes that could help bring the auction to a more timely conclusion?
As a side note, let me refer you to an article written last week by former CRTC vice-chair Rick French in the National Post, talking about changing the spectrum auction from a license to outright ownership.
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Industry Canada, AWS Spectrum Auction, Richard French