Telecoms regulator Ofcom is proposing a ‘combinatorial clock auction’ for selling licences for the 10GHz, 28GHz, 32GHz and 40GHz spectrum bands this year.
The price per lot is set by the auctioneer and bidders indicate how many lots they wish to bid for at that price.
The price is raised in each round and demand falls. The auction ends when demand is equal to or less than the supply. Those left in the auction pay the ‘clock’ price.
This will prevent the situation in the single-round sealed bid auction for 412-414MHz paired with 422-424MHz last year, when Arqiva paid £1,500,025 to win the licence but the next highest bid was just £387,700.