The first step to winning any auction is to understand the rules. This is especially true for the 5G spectrum auction, which is likely to be one of the most complex auctions ever held. The rules are still being finalized, but there are a few key things that potential bidders should know.
First, the 5G spectrum will be divided into two bands: low-band and high-band. Low-band spectrum is better suited for coverage, while high-band spectrum is better suited for capacity. As a result, bidders will need to decide which band they want to focus on.
Second, the 5G spectrum will be auctioned off in blocks of 20 MHz each. Bidders will need to submit their bids for each block they’re interested in.
Third, the 5G spectrum auction will have a reserve price that all bidders must meet. The reserve price has not been finalized yet, but it is expected to be around $1 billion per band.
Fourth, the 5G spectrum auction will use a unique bidding format called “clock bidding.” Clock bidding allows bidders to submit bids for multiple blocks of spectrum at once, and then withdraw their bids if they’re not winning. This format is designed to speed up the auction process and ensure that all bidders have a fair chance of winning some spectrum.
Finally, it’s important to note that the 5G spectrum auction is not just about money. Bidding strategies and consortiums will also play a big role in determining who wins the auction.