Spectrum Auction Services
FTI Consulting together with our affiliate, Auction Technologies has advised buyers in more than a dozen national spectrum auctions throughout the world, providing a full suite of auction planning services and execution tools including auction design and rule making, bid strategy and game theory, software development, bid tracking, war room management, and spectrum valuation. We provide one-stop shop for auction consulting services and electronic auction software.
In addition to working for large carriers, we have worked with multiple US broadcasters and consortiums of broadcasters regarding the upcoming US broadband spectrum (reverse auction dynamics) to provide auction design, preliminary auction clearing simulation (includes estimated clearing price ranges and probabilities for individual markets) and assessment of channel sharing partnership opportunities.
Successful auction outcomes start well in advance with advocacy to promote a fair auction framework and spectrum policy and preparation of integrated business cases and bid strategy. FTI Consulting provides buyers and sellers of spectrum with specialized analyses critical to decision-making during the periods preceding, during and immediately following spectrum auctions.
Regulatory Advocacy – FTI Consulting supports operators in the regulatory process, assessing and lobbying for spectrum policies and auction rules that are fair and support company objectives. In addition to the resources of our own team, we have access to a network of academic experts who can assist, as needed with ex-parte presentations, white papers, and expert reports on key policy issues.
Valuation – To support bid strategy development most effectively, spectrum valuations are tailored to the auction framework. Our TMT practice has extensive experience supporting carriers with wireless business modeling and valuation to provide business case development, network cost modeling, scenario analyses, and competitor analysis and spectrum valuation. In addition, we review/challenge analyses that have already prepared.
Bid Strategy – We have game theorists with three decades of experience and a track record for helping carriers bid effectively in spectrum auctions to attain the spectrum they need at the most advantageous prices. We work closely with clients to formulate bid strategies and tactics and to map out decision points that are optimal given the specific auction design and the client’s spectrum goals and spend limits.
Deliverables include playbook and plan to gain final mandates, approvals and the necessary contingency plans for implementing the playbook.
Bidding Advisory/In-Auction Services
Auction Software – We have developed extensive software tools that automate calculations and analysis, conduct simulations, and facilitate communication and data transfer. The software provides Bid Tracking, Auction Management System, Simulations and Advanced Analytics.
War Room Management – We set up and manage numerous war rooms to support simulations, rehearsals, and provide live auction support for auctions. War room staffing and defined roles & responsibilities include:
- Layout and equipment selection
- IT and security
- Preparation of procedures and check lists
- Team training and auction rehearsals
- Emergency procedures and back-up protocols
Post Auction Planning & Services
Channel Sharing – The FTI Consulting team of technical and legal experts has the tools to assist broadcasters on structuring channel-sharing arrangements. We have developed simulation models that help determine the economics between tower owner and tenant. The models consider the relevant factors that impact decision making about channel-sharing including spectrum values, opportunity costs of giving-up spectrum and must-carry considerations, among others.
- Identify channel sharing needs by market for ATSC 1.0 & 3.0 deployment
- Identify channel sharing partners by market
- Develop business arrangements
- Craft frameworks for negotiating and finalizing agreements