Simulation Analysis Of SMRA Auction: An Application To Forthcoming LTE Spectrum Auction In Poland

Abstract

: In the second half of 2014 Poland is expected to conduct the reservation procedure of radio spectrum for commercial high-speed Internet services (LTE). Given the enormous market value of resources, for the first time in the history of the Polish elecommunications market, the allocation of frequency blocks will be determined through a multi-object MRA auction carried out by the Offi ce of Electronic Communications (UKE). Drawing on the theoretical properties of the auction format chosen by the Polish regulator, we have developed a dedicated simulator to analyze auction runs for fi ve 800 MHz blocks. We consider possible developments of LTE auction and expected revenues it brings for four most likely confi gurations of bidders.