Why does the ACMA use a simultaneous multi-round auction (SMR) methodology to allocate spectrum?
When allocating multiple lots of spectrum in a competitive market, the SMR auction process provides the fairest, most transparent and economically efficient method for assigning and pricing spectrum access rights across a band. This auction methodology has proven an efficient and fair way to sell multiple lots where some of the lots are complementary and/or substitutable for their intended business purpose. The advantages of an SMR auction over other market-based allocation methods, such as a tender, are that: • the bidding process is open and transparent • it allows bidders to switch their bidding to substitutable lots if the bids from other bidders are too high for their preferred lots • bidders can aggregate lots to provide national coverage or to fill in gaps in existing coverage according to their business plans • it ensures that similar lots are sold at similar prices.
