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Polish experience from first-ever spectrum auction

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  • Kuś, Agnieszka

Abstract

The Polish 4G spectrum auction was a watershed event for the Polish telecommunications market. For the first time in history, the Office of Electronic Communications decided to award spectrum by using an auction process. Polish regulators implemented a simultaneous multiple-round ascending-bid auction, which was widely used worldwide for selling spectrum. The process leading to the auction and the auction itself was lengthy and eventful. Due to the wrong auction design, the auction dragged on indefinitely, causing a delay in spectrum distribution. The auction ended only as a result of the government's intervention, after 8 months (513 rounds) of bidding that raised revenue of over PLN 9 billion (over EUR 2 billion). This paper describes in detail the rules of the Polish 4G auction, analyses bidding behaviour and auction dynamics of the crucial phases of auctions, and presents the final outcomes. It also draws lessons that could help policy makers in Poland and other countries in auction design.

Suggested Citation

  • Kuś, Agnieszka, 2020. "Polish experience from first-ever spectrum auction," Telecommunications Policy, Elsevier, vol. 44(7).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:7:s030859612030063x
    DOI: 10.1016/j.telpol.2020.101971
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    References listed on IDEAS

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    4. Bichler, Martin & Gretschko, Vitali & Janssen, Maarten, 2017. "Bargaining in spectrum auctions: A review of the German auction in 2015," Telecommunications Policy, Elsevier, vol. 41(5), pages 325-340.
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    7. Peter Cramton & Axel Ockenfels, 2017. "The German 4G Spectrum Auction: Design and Behaviour," Economic Journal, Royal Economic Society, vol. 127(605), pages 305-324, October.
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    Citations

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    Cited by:

    1. Sridhar, V. & Prasad, Rohit, 2021. "Analysis of spectrum pricing for commercial mobile services: A cross country study," Telecommunications Policy, Elsevier, vol. 45(9).
    2. Agnieszka Kus, 2023. "Do the High Spectrum Prices Harm Consumers? Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 415-437.
    3. Choi, Yong-Jae, 2022. "Spectrum auctions in a thin market: The Korean case," Telecommunications Policy, Elsevier, vol. 46(8).
    4. Blumrosen, Liad & Solan, Eilon, 2023. "Selling spectrum in the presence of shared networks: The case of the Israeli 5G auction," Telecommunications Policy, Elsevier, vol. 47(2).
    5. Escobar, Juan & Epstein, Rafael & Correa, Jose & Gidi, Pamela & Markovits, Jozsef & Epstein, Natalie & Montenegro, Yerko & Turkieltaub, Abner, 2023. "The 5G spectrum auction in Chile," Telecommunications Policy, Elsevier, vol. 47(7).
    6. Kuś, Agnieszka & Massaro, Maria, 2022. "Analysing the C-Band spectrum auctions for 5G in Europe: Achieving efficiency and fair decisions in radio spectrum management," Telecommunications Policy, Elsevier, vol. 46(4).

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    More about this item

    Keywords

    Spectrum auctions; SMRA; Polish LTE auction; Bidding behaviour; Non-binding bids;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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