Meanwhile, multi-round auctions allow participants to respond to other players’ bids over a series of separate rounds. This process will repeat until the auction’s termination rules are met. The standard format for this is a multi-round incremental auction (SMRA).
The auction is just one part of the larger auction process. Typically, the process begins with consultation on the spectrum being auctioned and advice on scale, licensing, and geographical area. Next is a consultation on participation conditions, auction format and rules. After the final procedures, terms and conditions are agreed, contractors will register to participate.
Auction duration usually depends on the number of licenses offered and the level of competition, ranging from 1 day to several months. For example, in the US, the timeline prescribed by the Federal Communications Commission (FCC) is as follows: Consultation round: 4-6 months before auction; Final rule: 3-5 months before auction; Information workshop: 60-75 days before auction; Application deadline: 45-60 days before auction; Prepayment fee: 3-4 weeks before auction; Closing of participating bidders: 10-14 days before the auction; Trial bid: 2-5 days before auction; Real auction.
Vietnam organizes 5G spectrum auction
Like VietNamNet Previously reported, as planned, the 5G frequency auction will be held on the afternoon of March 8 at the Radio Frequency Department. A representative of the Radio Frequency Department said that the Department will not conduct the 5G frequency auction, but this will be done by the National 5th Partnership Auction Company.
The starting price of auction round 1 is 3,983,257,500,000 VND (three thousand nine hundred eighty-three billion, two hundred fifty-seven million, five hundred thousand VND). The starting price of the next auction round is the highest bid paid in the immediately preceding auction round. The applicable price at the auction of the 2500 MHz – 2600 MHz band block is VND 50 billion.
The auction form is by direct voting in many rounds, and the auction method will have to bid up the price. Bidding voting is conducted in many rounds until there are no more bidders, then the last enterprise with the highest bid is the winner of the auction. The determination of the winning enterprise is carried out according to the Auction Regulations and compliance with the law.
According to statistics from the Ministry of Information and Communications, Vietnam has 126 million mobile subscribers and the market is starting to reach saturation point. Another statistic shows that each year network operators are competing for about 800,000 new subscribers entering the market.
Previously, the Ministry of Information and Communications licensed telecommunications businesses to test 5G in 40 provinces and centrally run cities.
Network operators believe that 5G will be a digital infrastructure that will almost replace physical infrastructure in building the foundation and connecting society in the future.
