Canada's 700 Mhz Spectrum Auction: A Case Study

Abstract

The purpose of this paper is to present a case study of Canada’s 700 MHz spectrum auction, which took place at the beginning of 2014. The auction format adopted by the Canadian regulator was the Combinatorial Clock Auction (CCA). In Section 1, we review the band plan for Canada’s 700 MHz spectrum auction. We discuss the reasons and benefits from the band plan that Industry Canada applied. Section 2 presents the background information about selected, qualified bidders in this auction. Further in Section 3 the main stage of the auction, the Clock Rounds, is described; two conditions designed to induce bidders to truthfully reveal their preferences are explained as their understanding is key to understanding the novelties of the CCA; in this section results from the Canadian auction are presented. In Section 4 we analyse the Clock Rounds stage in search for behavioural patterns observed from the auction history and data that can help us characterise the bidding strategies employed in the auction.