US Experts Recommend Customized 3.5GHz Auction Rules

Recently, the Standford expert who led the team to help design FCC incentive auctions has advocated an auction process tailored to the 3.5GHz CBRS band.

As mobile operators for the licence period extended from three years to ten years of fighting, Standford expert Paul Milgrom has suggested that a three year licence period not only easy to implement, but also conducive to encourage enterprises to participate in the auction and the new company. Milgrom was entrusted by WiFiForward and WISPA to submit comments and suggestions to FCC, against the changes proposed by CTIA and T-Mobile to the CBRS rules. As one of the experts who have been involved in the initial design of the American Radio spectrum licence auction, Milgrom has a lot to say with its rich spectrum of auction experience. Milgrom served as Vodafone global auction consultant between 2008 and 2012 and led the team to design FCC, 600MHz, incentive auctions and computing software.

Many people believe that it is impractical to auction under existing rules because of the large number of authorized areas. Milgrom said that it was possible to have multiple simple auctions within a single platform for a short time. For example, the eBay platform always hangs nearly one billion of the entity products to be sold, while Google searches up to forty thousand times per second.

But does this model apply to the auction of radio spectrum licenses? Milgrom said the auction model used FCC than eBay and Google complex, so he strongly recommended that the 3.5GHz band of the extremely simple auction model, the bidders can simply and quickly in the operation, encourage competition and achieve more economic benefits and higher spectrum price. "Given the size of thousands of census zones, the 3.5GHz spectrum can employ a simple and efficient auction model where bidders avoid complex processes and FCC does not have to face tedious calculations."