Sep 2, 2015 - Christian Koboldt and Hans-Martin Ihle. For many observers, what happened in the German mobile broadband spectrum auction came.
DotEcon Discussion Paper Septem ber 2015, issue 15/01
The German mobile broadband spectrum auction: tales of mystery and retaliation Christian Koboldt and Hans-Martin Ihle
© dotecon 17 Welbeck Street London W1G 9XJ www.dotecon.com
The German mobile broadband spectrum auction: tales of mystery and retaliation Christian Koboldt and Hans-Martin Ihle For many observers, what happened in the German mobile broadband spectrum auction came as a surprise. At first, it looked as if the potentially very valuable 700MHz spectrum would go at the extremely low reserve price, with 900MHz spectrum not fetching much more. This was what had been predicted, given the small number of bidders and a format that supported strategies to keep prices low. But then, excess demand for 1800MHz frequencies triggered further bidding in the lower bands, eventually resulting in prices for the sub-1GHz spectrum that were substantially above reserve (though still low by international standards). The 1800MHz spectrum by contrast fetched a price at the upper end of international benchmarks, and more than double of what bidders paid for spectrum in the lower frequency bands. This may have been a good outcome for the German regulator, but made the auction more expensive for bidders than many would have expected. This paper looks in more detail at the auction dynamics and offers some suggestions that could explain why bidders failed to succeed in keeping prices low.
1 Introduction On 19 June 2015, the German Mobile Broadband spectrum auction (“Project 2016”) ended after 16 days and 181 rounds of bidding. This was the first award in Europe that included the second tranche of Digital Dividend spectrum – the 700MHz band – alongside frequencies in 900MHz and 1800MHz bands (the traditional GSM bands where the initial licences are expiring).1 The auction also included spectrum in the L-band (1500MHz), which can be combined with paired spectrum to provide greater downlink capacity. Final prices, though low by international comparison, were between two and six times higher than reserve prices, and prices had increased in all bands. Surprisingly, spectrum in the 1800MHz band fetched a relatively high price in comparison to other European auctions (see Figure 1). The price for 1800MHz was not only more than ten times higher than in the 2010 multi-band auction, but also at least 25% more expensive than the sub-1GHz spectrum, which went for around a third of the price paid in 2010 for the first Digital Dividend.
1
Bundesnetzagentur, “Mobile Broadband – Project 2016”, http://www.bundesnetzagentur.de/EN/Areas/Telecommunications/Companies/FrequencyManagement/Electron icCommunicationsServices/MobileBroadbandProject2016/project2016_node.html
The German mobile broadband spectrum auction: tales of mystery and retaliation
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Figure 1: Prices for 1800MHz spectrum (€ct per MHz per capita) Danish 1800MHz award - 2010* German 2010 multiband auction - 2010 Slovakia 800, 1800 and 2.6 - 2013 Czech 4G Auction 800MHz 1800MHz and 2.6GHz - 2013 Portuguese 4G Multiband Auction - 2011 Average (excl. German 2015 auction) Swedish 1800MHz - 2011**
1.65 2.85 7.38 9.83 14.08 19.47 21.51
Greek 900 and 1800 - 2011
22.45
Poland 1800MHz - 2013
22.75
Italian 4G Auction - 2011*** German mobile broadband auction - 2015 Bulgaria Fourth mobile licence - 2013 Bulgarian 1800MHz award - 2011
29.36 30.07 40.60 41.73
Source: DotEcon Spectrum Awards Database; fees payable in addition to the headline price (e.g. annual licence fees) are included at their net present value using a discount rate of 8% All licences are for 15 years except * 22 years ** 25 years *** 18 years
The duration of the auction and the fact that prices rose substantially above reserve in all bands came as a surprise to many commentators: the auction provided almost a textbook example of conditions under which bidders should find it both attractive and easy to reduce demand and accommodate each other in exchange for a low price. After the merger of O2 and E-Plus, there were only three bidders left. New entrants were nowhere to be seen. The regulator had chosen to use a fully transparent simultaneous multi-round ascending (SMRA) format, and reserve prices were set at an extremely attractive €75 million per 10MHz (2x5MHz block) for low-frequency spectrum, and half that for frequencies above 1GHz. Likely outcomes – though not necessarily obvious in every band – should have been fairly easy to predict, and therefore the cost of trying to compete for spectrum that a bidder could not realistically expect to be able to acquire should have been clear from the beginning. Yet, not only was bidding intense in the band where a natural split was perhaps least obvious (1800MHz), but it also spread to the other bands where bidding re-started long after conflicting demands seem to have been resolved. In this paper we provide a brief overview of what happened in the auction, and then discuss reasons that might explain why the lure of substantially lower prices may have failed to work its magic. In doing so, we make use of the round results published by the German regulator, Bundesnetzagentur, for each of the bidding rounds. This data only provides information about standing high bids and bidders, and therefore presents only a partial view of what happened in the auction – but one that nevertheless reveals some interesting detail about the auction dynamics and bidder behaviour.
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2 Auction setup 2.1 Background The German award included spectrum in four bands, namely the traditional GSM bands (900MHz and 1800MHz), where existing licences were to expire, frequencies in the L-band (1500MHz) and the second tranche of the digital dividend spectrum released in the wake of the move from analogue to digital terrestrial television transmission (700MHz). Spectrum in the L-band is unpaired and can be combined with other spectrum (e.g. in the 800MHz band or the 1800MHz band) to increase downlink capacity for mobile broadband services. All other spectrum was offered as paired frequency blocks. Whilst the entire 900MHz band was included, some of the 1800MHz band had already been awarded in the 2010 multi-band auction and was therefore not available for this award. Specifically, there were six blocks of 2x5MHz in the 700MHz band, seven blocks of 2x5MHz in the 900MHz band, ten 2x10MHz blocks in the 1800MHz band (accounting for 2x50MHz of the total 2x75MHz available in the band), and eight blocks of 5MHz in the 1500MHz band. With the exception of the lowest block in the 900MHz band and the top block in the 1800MHz band2, which were offered as frequency-specific blocks, all spectrum was offered in the form of frequency-generic lots. This means that individual blocks within a band were entirely homogenous, and bidders would be able to obtain contiguous frequency assignments after the auction by agreement or through regulatory intervention. After the merger between O2 and E-Plus, only three mobile network operators took part in the auction, namely Telekom Deutschland GmbH (Telekom), Telefónica Deutschland GmbH (O2), and Vodafone Deutschland GmbH. All hold spectrum in other mobile bands under unexpired licences (800MHz, 2.1GHz and 2.6GHz); Telekom and O2, who had acquired 1800MHz blocks in the 2010 auction, also hold unexpired licences in this band. The table below shows the bidders’ existing spectrum holdings in the 900MHz and 1800MHz bands. Table 1: Existing spectrum holdings 900MHz
1800MHz
of which unexpired
Telekom
2x12.4
2x20
2x15
Vodafone
2x12.4
2x5.4
2x10
2x44.8
O2 (incl. E-Plus spectrum)
2x10
The large amount of 1800MHz spectrum held by O2 is the result of the merger of the two socalled E-Netze – the later entrants to the mobiles markets utilising mainly the 1800MHz band, with each of them holding only a single block in the 900MHz band, but substantive amounts of 1800MHz spectrum. By contrast, Telekom (which prior to the 2010 award, like Vodafone, only had 2x5MHz in the 1800MHz band) and Vodafone mainly used the 900MHz band for the provision of GSM services. A spectrum cap of 2x15MHz in the 900MHz band
2 The reason for offering these blocks on a frequency-specific basis was that there were additional restrictions to protect adjacent GSM-R use for the 900Mhz block, and potential interference from DECT for the 1800MHz block.
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was put in place to protect existing GSM use – with three bidders and a total of 2x35MHz available, bidders were guaranteed to win at least 2x5MHz. Reserve prices were set very low by international comparison at €75m per 10MHz block of sub-1GHz spectrum, and at half that level for spectrum above 1GHz. The following figure provides an overview of the minimum prices used in recent 800MHz auctions in Europe as well as the reserve price adopted for the planned 700MHz auction in France. The reserve prices used for both German auctions (800MHz in 2010 and 700MHz in 2015) were some of the lowest observed in recent auctions. Figure 2: Minimum prices for 700/800MHz spectrum across Europe (€ct per MHz per capita) Portugal (2011)
62.2
France (2015)
60.7
Czech Republic (2013)
60.4
Italy (2011)
60.4 58.9
Spain (2011) Greece (2014)
54.2
United Kingdom (2013)
35.7
Belgium (2013)
35.2
Finland (2013)
25.7
Netherlands (2012)
19.8
Sweden (2011)
14.0
Germany (2015)
9.2
Denmark (2012)
7.7
Lithuania (2013)
3.7
Latvia (2013)
1.2
Germany (2010)
0.3 0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Source: DotEcon Spectrum Awards Database; fees payable in addition to the headline price (e.g. annual licence fees) are included at their net present value using a discount rate of 8% * 700MHz;
2.2 Auction format The German auction used a standard SMRA format. The main features of this format are as follows: 3
3
The German rules contained some additional details (e.g. phased activity requirements and the ability of bidders to declare a minimum spectrum portfolio in advance of the auction), but these are of limited relevance for the subsequent discussion. The full rules can be found in the decision document on the Bundesnetzagentur’s web site (http://www.bundesnetzagentur.de/SharedDocs/Downloads/DE/Sachgebiete/Telekommunikation/Unternehme n_Institutionen/Frequenzen/OffentlicheNetze/Mobilfunk/DrahtloserNetzzugang/Projekt2016/EntscheidungProje kt2016_pdf.pdf?__blob=publicationFile&v=1)
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•
Bidders make bids on individual blocks over a number of rounds, and the auction closes when no new bids are received in a round (and no waivers4 have been placed). The highest bid placed on any block in a round is designated as standing high bid (with the bid submitted earlier winning in the case where two or more bids are placed at identical level). Standing high bidders at the close of the auction win their standing high bids and pay the respective bid amounts. In the German auction, bidders were able to withdraw their standing high bids in a limited number of rounds, but remained liable for the amount of the withdrawn bid unless the block received further bids in the auction.
•
New bids have to be above the current standing high bid by at least the minimum bid increment set by the auctioneer. Bid amounts may be entirely at the discretion of the bidder, or may be limited to a number of options from which bidders can choose. In the German auction, bidders were able to bid at the minimum required amount, or above the minimum bid selecting from a number of discrete bid amounts.5
•
Maintained standing high bids and newly placed bids, evaluated at the respective block’s lot rating, count towards a bidder’s activity. The bidder’s activity must not exceed its eligibility, and the bidder’s activity in one round determines its eligibility for the next round (unless a waiver has been used, in which case eligibility remains unchanged). The German auction used a staged activity requirement, where bidders would initially be able to maintain their eligibility even if their bidding activity was lower (65% of eligibility at the beginning, increased in steps until bidders needed to be active at 100% of their eligibility level in order to maintain eligibility).
The German auction was fully transparent in the sense that each bidder was informed about all decisions made by other bidders in the previous round (with the exception of waivers). The SMRA format has been widely used in spectrum auctions since the 1990s, and is well understood. Given that bidding closes on all blocks simultaneously, bidders have the ability to switch between blocks in response to price changes (though switching abilities may be limited as a result of holding standing high bids). As such, the SMRA is considered to be able to deal reasonably well with substitutability between blocks, but leaves bidders exposed to so-called ‘aggregation risks’, i.e. the risk that a bidder may eventually end up winning an unusable combination of blocks.
2.3 Strategic bidding in the SMRA At the same time, the SMRA is often seen to be relatively vulnerable to strategic bidding, in particular where it is fully transparent and where bidders have some ability to choose bid amounts (as in this specific case), as bidders can engage in signalling by making so-called ‘jump bids’ (bids above the minimum required bid amount).
4 Waivers allow bidders to maintain their eligibility even if their activity falls below the required levels. Each bidder had a limited number of waivers that could be placed during the auction, and would be placed automatically if the bidder would otherwise lose eligibility. 5
Specifically, bidders could place bids at the level of the minimum valid bid – the reserve price in the first round, and the current standing high bid plus the minimum bid increment in subsequent rounds (where applicable) – or at one of a number of discrete amounts above the minimum bid (€10,000, €20,000, €50,000, €100,000, €200,000, €500,000, €1,000,000, €2,000,000, €5,000,000, €10,000,000, €20,000,000, €50,000,000 and €100,000,000)
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Signalling through jump bids has been a common feature in the SMRAs run in Germany. They were used very successfully in the 1999 auction of 1800MHz spectrum, where bidding ended after three rounds.6 Jump bids were also used – albeit less successfully - in the 3G auction to signal an agreeable outcome,7 and then again in the 2010 multiband auction to signal priorities in the first round. In the latter auction, Telekom, Vodafone and E-Plus used jump bids to indicate “high priority” blocks that they would not be willing to concede while smaller or no jump bids seemed to indicate lower priority and a willingness to reduce demand for those blocks.8 SMRAs are also susceptible to strategic demand reduction. Winners in an SMRA pay roughly the same price per block. Competing for more blocks than a bidder can realistically expect to win only drives up the price of all blocks, and thus unnecessarily increases the amount that the winner has to pay. So if a bidder expects to end up with a smaller number of blocks than it is currently bidding for and expects to be the marginal bidder (i.e. the bidder most likely to drop demand to bring the auction to a close) it should drop to the smaller package straight away as continuing to compete for the larger package only drives up the price it will eventually have to pay for winning the smaller package. Experimental research has shown that strategic demand reduction incentives are fairly strong in uniform price auctions such as the SMRA.9 These features of the SMRA format, combined with the extremely low reserve prices and the limited number of bidders suggested that the German auction might end quickly with prices remaining rather low and bidders enjoying substantial surplus. Full transparency allows bidders to indicate their suggestions for mutually acceptable outcomes early on in the auction while a staged activity requirement makes it easy for bidders to explore whether these outcomes are feasible without losing the ability to increase their demand should accommodation prove to be elusive. Provided that bidders are able to form consistent expectations about the likely outcomes that would eventually emerge from a fully competitive bidding process, they should be able to bring the auction to an early close without prices having to increase by much.
6
See Veronika Grimm, Frank Riedel and Elmar Wolfstetter, 2001, Low Price Equilibrium in Multi–Unit Auctions: The GSM Spectrum Auction in Germany (available at http://edoc.hu-berlin.de/series/sfb-373-papers/200131/PDF/31.pdf ): “The first round of bidding started at 10:15 a.m.; the minimum bid was set to the nominal level of just DM 1 Million per (paired) 1 MHz bandwidth. Bidder [sic] had 30 minutes to make their first bids. When the results of the first round of bidding were shown on the screen, already after 8 minutes, the press room was filled with murmurs and whistles: Mannesmann (M) had topped the minimum bid by apparently surprising jump bids in the order of DM 36.36 Million for frequencies 1 to 5, DM 40 Million on frequencies 6 to 9, and DM 56 Million on (the larger) frequency 10 … In the second round, T- Mobil (T), a subsidiary of Deutsche Telekom, raised bids on the first five frequencies by slightly more than the minimum bid increment, and thus reduced bidding rights to five. As a result, it outbid the two smaller incumbents, Viag Interkom and E-Plus, who subsequently withdrew from the auction. In round three no bids were placed, and the auction was over, before it had gained momentum.” 7
Veronika Grimm, Frank Riedel, and Elmar Wolfstetter, 2001, The Third Generation (UMTS) Spectrum Auction in Germany, (available at http://edoc.hu-berlin.de/series/sfb-373-papers/2001-70/PDF/70.pdf). 8
Peter Cramton and Axel Ockenfels, 2014, The German 4G Spectrum Auction: Design and Behavior, available at http://www.cramton.umd.edu/papers2010-2014/cramton-ockenfels-german-4g-auction.pdf . 9
See, for example, John H Kagel and Dan Levin, 2000, Behavior in multi-unit demand auctions: experiments with uniform price and dynamic Vickrey auctions (available at http://www.econ.ohio-state.edu/kagel/multi.pdf) or Jacob K Goeree, Theo Offerman and Randolph Sloof, Demand Reduction and Preemptive Bidding in Multi-Unit Licence Auctions, (available at http://papers.tinbergen.nl/04122.pdf).
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2.4 Focal points In order to examine, whether such expected outcomes (also known as focal points) did exist, it is necessary to examine what possible splits of the available spectrum across the three bidders could reasonably be expected to emerge from competitive bidding. For the 700MHz band with six available blocks an expectation that the band would eventually be shared equally across the three bidders would seem to be natural. There are no asymmetries across bidders in terms of existing network infrastructure or spectrum holdings in the band that would suggest a deviation from equal sharing. For the 900MHz band, matters look slightly more complicated. There is no obvious solution for sharing seven blocks across three bidders. However, assuming that Telekom would never accept a reduction in its 900MHz spectrum endowment the possible outcomes are limited. Either, Vodafone would eventually accept being pushed down to two blocks, or O2 would reduce its demand to a single block (which it would be guaranteed under the rules, with a 2x15MHz spectrum cap in the band). With O2 post-merger being the largest German MNO by customer numbers, the latter outcome would seem unlikely, however. By comparison, the situation in the 1800MHz band is more complex, not least because two of the three bidders had won frequencies in this band in the 2010 auction. However, Vodafone not having won any spectrum in the band in 2010 would have to win at least four blocks in order to be able to take advantage of the speed provided by the largest carriers. Telekom would only need to win an additional 2x5MHz – i.e. a single block - to be able to deploy a 2x20MHz LTE carrier, and O2 would need to win two blocks. This would leave three blocks to play for, opening up the opportunity for a symmetric outcome post auction with each of the three bidders having 2x25MHz10, but even so the number of potential outcomes would seem to be relatively limited. Spectrum in the L-band appears to be less valuable and might be considered to be more or less incidental to the bidding outcomes (like the unpaired 2.6GHz spectrum in the 2010 auction), so can be ignored for our purposes.11 In summary, there was a fairly limited number of likely bidding outcomes that could provide focal points for an early accommodation.
3 Auction dynamics The figure below provides an overview of the auction with reference to average block prices in each of the bands. This shows that: •
•
there seems to have been agreement about the split of the 700MHz band from the first round, with prices practically remaining at reserve until bidding flared up in round 154; there seems to have been some initial disagreement about the split of the 900MHz band, but this was resolved fairly quickly and from round 29 onwards prices
10
Arguably, O2 might have a greater need to use 1800MHz frequencies for serving its legacy GSM customers, and might therefore try to obtain more than three blocks, though this would mean that one of Vodafone or Telekom would end up with only 2x20MHz. 11 In the event, it seems that O2 showed no interest in this spectrum, not having been standing high bidder on any of the 1500MHz blocks at any point throughout the auction.
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remained unchanged until bidding activity returned throughout a number of episodes; what appears to have driven the auction along was the disagreement about the split of the 1800MHz band, which then triggered switching back to the 900MHz band and some retaliatory bidding in the 700MHz band; there was constant bidding activity in the 1500MHz band, albeit at a fairly low level.
•
•
Figure 3: Average block prices 300
250
1800MHz
200
900MHz 700MHz
€m 150
100
50
0
1500MHz
1
11
21
31
41
51
61
71
81
91 101 111 121 131 141 151 161 171 181 Round
Overall, the story appears to be one where bidding was essentially driven by disagreement over the split of the 1800MHz band, with phases of strategic bidding in the 700MHz and 900MHz bands. The following subsections provide a brief narrative of bidding in the different bands. Detailed round-by-round data on standing high bids and bidders for the individual blocks can be found in the annex.
3.1 Initial bids in the 700MHz band The figure below shows the initial bids in the 700MHz band. O2 indicated its demand for two blocks with moderate jump bids, bidding €50,000 above reserve. Similarly, Vodafone made jump bids for two blocks (€20,000 above reserve). Telekom appears not to have made jump bids (though we cannot rule out the possibility that Telekom has made bids above the minimum bid amount on one or more of the first four blocks). We cannot be sure that each bidder placed bids on the maximum number of blocks available in the band, but the fact that no further bids were made in this band until round 154 suggests that bidders had a shared understanding of the likely outcome and were prepared to settle for this distribution of spectrum at low prices.
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Figure 4: Opening bids in the 700MHz band Block
A
B
C
D
E
F
O2
O2
Vodafone
Vodafone
Telekom
Telekom
75,050 (50)
75,050 (50)
75,020 (20)
75,020 (20
75,000
75,000
Round
1
Cells show the standing high bidder, the standing high bid (in €000) and in parentheses the amount by which the bid exceeds the minimum bid (in €000).
3.2 The initial resolution of excess demand in the 900MHz band The figure below shows opening bids in the 900MHz band. Again, O2 used jump bids to indicate its intention to acquire two blocks. Vodafone made jump bids on three blocks, and Telekom did not make jump bids. One may reasonably assume that Telekom made bids on blocks E, F and H but was outbid by Vodafone on the first two of these. The choice of blocks may to some extent be explained by existing spectrum holdings in the band.12 Figure 5: Initial bids in the 900MHz band Block
A
B
C
D
E
F
H
O2
O2
BNetzA
Vodafone
Vodafone
Vodafone
Telekom
75,050 (50)
75,050 (50)
75,020 (20
75,020 (20)
75,020 (20)
75,000
Round
1
In any case, there was some excess demand in the 900MHz band, which took a few rounds to resolve. Throughout this process, O2 seems to have indicated its intention to acquire two blocks and Telekom appears to have signalled that it wished to acquire the three blocks permitted under the spectrum cap.13 Bidding in this band ended initially in round 29 when Vodafone contracted its demand to two blocks and increased its demand for 1800MHz spectrum.
12
O2 currently holds the bottom 10MHz in the band, which may explain the placement of its bids (though block B to H are generic). Telekom holds spectrum at the upper end of the band, which might explain it placing its bids on blocks E to H, which in light of the generic nature of blocks B to H would suggest some effort to act in a way that avoids conflicting bids. Vodafone’s choice of blocks is perhaps somewhat surprising, and placing bids on blocks C to E might seem more natural, though this would of course still result in conflicting demand for block E. 13
In addition to making jump bids in the first round, O2 for example also raised its own standing high bid on the generic block B by more than the minimum bid amount in round seven, at the point at which the minimum bids for the other five blocks on which Vodafone and Telekom had been bidding would have become higher than the minimum bid on blocks A and B. With Vodafone and Telekom each holding three standing high bids at the end of round 18, Telekom increased its own standing high bid putting an extra €10m on the minimum bid, and O2 bid back on the block where it had just been outbid in the previous round. In doing so, O2 not only made a bid on the block that was not the cheapest available block, and also used a small jump bid.
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3.3 Competition in the 1800MHz band Unlike in the two sub-1GHz bands, where bidders appear to have been very clear about their requirements and used jump bids to signal them, initial bidding in the 1800MHz band was rather more opaque. In the first round, only blocks A to F received bids, with Telekom being standing high bidder on block A, and O2 being standing high bidder on the five blocks B to F. There were no jump bids. This means that Vodafone and Telekom may have placed bids on these blocks, but were beaten in a tiebreak with O2. Bidders would of course have seen the bids submitted. In the second round Vodafone placed bids for four blocks – the three blocks G to I and the Ablock where it displaced Telekom as the standing high bidder. These bids were at €20,000 above the minimum bid and might be seen as a signal from Vodafone that it was interested in acquiring four blocks in the band. Bidding on the A-block held by Telekom rather than on any of the blocks held by O2 (or bidding on the somewhat inferior J-block, which did not come into play until round 20) might indicate Vodafone’s view that accommodation in the band would have to come from Telekom rather than O2. However, Telekom made it very clear in the next round that it wanted to acquire three blocks, which it confirmed through appropriate jump bids throughout the auction.14 After bidding started on the J-block, we can be confident that excess demand in this band was limited to a single block as only one of the standing higher bidders changed each round over the next ten rounds or so. With O2 bidding for four blocks and Telekom holding three blocks, this means that Vodafone’s demand was also for four blocks until round 30, where Vodafone outbid O2 to add a fifth block to its four standing high bids. This is a switch from a third block in the 900MHz band to a fifth block in the 1800MHz band at the point where the former becomes about 75% more expensive than the latter. It is then largely this competition between Vodafone’s demand for a fifth block alongside Telekom’s demand for three blocks and O2’s bids for three or more blocks of 1800MHz spectrum that kept the auction going and eventually triggered further bidding in the two sub-1GHz bands.
3.4 Further bidding in the 900MHz band, continuing competition in 1800MHz and retaliation in the 700MHz band Competition returned to the 900MHz band when in round 74 Vodafone switched from bidding on a fifth block in the 1800MHz band to bidding for three blocks in 900MHz. Specifically, Vodafone raised its four standing high bids in the 1800MHz band with jump bids at €5m above the minimum, raised its two standing high bids in the 900MHz band with similar jump bids, and used a further jump bid at that level to outbid O2 on the lowest
14
Specifically, Telekom bid back on blocks G to I rather than the cheaper blocks held by O2, in addition to placing a bid at €50,000 above the minimum bid amount on the F-block held by O2. Further examples of Telekom signalling that it was set to acquire three blocks can be found throughout the auction. For example, In round 19 Telekom not only raised its own standing high bids, but did so with a small jump bid at €10m above the required minimum bid in round 19. Vodafone’s demand for a fifth block triggered another signal from Telekom, which raised its own three standing high bids with a jump bid of €5m above the minimum bid required in round 32. Similarly, O2’s jump bid in and in round 42 on one of the blocks held by Telekom triggered another jump bid (at €10m above the minimum bid), including an increase of Telekom’s own standing high bids. Telekom throughout the auction consistently signalled its determination to win three blocks in the band.
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900MHz block. Bidding in the 900MHz band then continued for ten rounds until Vodafone switched back to a fifth 1800MHz block. Both Telekom and O2 used jump bids to indicate their interest in three 1800MHz blocks each.15 This meant that with Vodafone’s demand for a fifth block excess demand for one block remained. In round 123, Vodafone repeated its switch back into the 900MHz band, by placing four jump bids in the 1800MHz band (raising three of its own standing high bids and outbidding O216) and three jump bids in the 900MHz band (raising its two standing high bids and outbidding O2). These jump bids were made at €5m above the minimum amount. Bidding continued in both the 900MHz and the 1800MHz bands, with various jump bids providing more or less clear signals of bidders’ intentions.17 In round 138, O2 held six standing high bids in the 1800MHz band, but was then outbid by Telekom on three of these in the following round, when bidding in the 1800MHz band stopped. At the same time, O2 clearly signalled that it was not prepared to leave the auction with a single 900MHz block. This led Vodafone to taking competition to the 700MHz band, which had seen no bidding activity since the first round18 and bidding in the 900MHz band came to a temporary halt. Specifically, Vodafone outbid O2 on both of its standing high bids in the 700MHz band and raised both of its own standing high bids. O2 then outbid Telekom with small jump bids (€100,000 above the minimum), perhaps in order to make these blocks more expensive than those held by Vodafone. Telekom subsequently outbid Vodafone, but also outbid O2 on one of its 1800MHz blocks. Bidding then resumed in the 1800MHz band. Vodafone’s bidding in the 700MHz band appears to be retaliatory rather than aimed at genuinely gaining more than two blocks in the band.19 Having been outbid by O2 on its fourth block in the 1800MHz band in round 164, and by Telekom in round 165, Vodafone then increased demand in the 900MHz band to three blocks again and eventually placed jump bids at €20m above the minimum amount on all of the six blocks in the 700MHz band in round 169 (retaining only a single standing high bid in the 900MHz band). With the other bidders not accommodating, Vodafone placed another such bid across all six 700MHz blocks at €20m above the minimum in round 172.
15
For example, in round 92, Telekom made three jump bids at €10m above the minimum amount, raising two of its own standing high bids, and O2 made three jump bids at €10,000 above the minimum amount, likewise raising two of its own standing high bids; further use of jump bids was made in rounds 106, 108, 112 and 114 16
In the same round, Telekom again signalled its intention to acquire three blocks in that band through jump bids at €10m above the minimum amount. 17
For example, in round 146, O2 placed jump bids at €10m above minimum on three blocks in the 900MHz band, which included raising its own standing high bid on Block E. This bid accelerated price increases in the 900MHz band, but its deeper meaning is somewhat unclear. 18 Specifically, in round 154, O2 immediately bid back on the block where it had just been outbid by Vodafone and raised its own standing high bid on the second by €20m above the minimum bid. 19 For example, Vodafone raised two of its standing high bids through jump bids at €5m and €10m above the minimum amount in rounds 163 and 165 respectively, but made further bids at the minimum amount required.
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3.5 Point taken? This second blanketing of the 700MHz band with jump bids eventually triggered a response. O2 bid back on two 700MHz blocks in round 173, but at the same time withdrew two of its standing high bids in the 900MHz band while outbidding Vodafone on its single standing high bid on the lowest 900MHz block, as well as one of its standing high bids in the 1800MHz band. Vodafone took this offer and bid on the withdrawn blocks in round 174. Bidding for paired spectrum ended in round 175, but Telekom placed two additional bids in the 1500MHz band presumably in order to retain eligibility in case other bidders had used waivers alongside their reduction in activity and could come back on more blocks. It then took another three rounds until bidding in this band came to an end with Vodafone and Telekom holding four blocks each, and three further rounds without any activity followed before the auction eventually closed in round 181.20
4 Mystery and retaliation The bidding behaviour that can be established from examining standing high bids – raises a number of questions.
4.1 Why did bidders not signal their intentions in the 1800MHz band clearly? First, whilst two of the three bidders used small jump bids at the beginning of the auction to indicate their requirements in the sub-1GHz bands, there was no indication that this option was used in the 1800MHz band. This is perhaps even more surprising when taking into account that the benefits from trying to establish a focal point in this band early on would have been greater than in the other bands where the number of possible outcomes was more limited. Perhaps more intriguingly, bidders appear not to have expressed their maximum demand for 1800MHz spectrum early in the auction. Vodafone did not initially pursue five blocks in the band, but bid on the fifth block only at the point where it reduced demand to two blocks in the 900MHz band. With full transparency, it should have been easy to indicate these alternatives (e.g. by bidding on three and five blocks in the two bands respectively, but indicating that the last block would be fungible through lower bid amounts). It is not obvious why bidders failed to exploit the full transparency of the auction to establish focal points by signalling core demands and alternatives. As an aside, Vodafone’s switching between a third 900MHz block and a fifth block in 1800MHz is not in any obvious way linked to valuation differences. Vodafone switched from a third block in 900MHz to a fifth block in 1800MHz when the former became around 75% more expensive than the latter, but then switched back to 900MHz when prices were roughly equal. It then returned to 1800MHz without any substantive shift in relative prices, and switched back to a third 900MHz block when the price of 1800MHz spectrum was around 50% above the price of 900MHz. It eventually settled for a fifth 1800MHz block at roughly that price ratio. In absolute terms, Vodafone switched from the third 900MHz block to a fifth 1800MHz block when the latter was around €45m cheaper, and did not switch back (except for a brief period from round 74 to round 85) until 1800MHz became around €60m
20
At least one bidder must have used a waiver in these rounds to prevent the auction from closing.
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13
more expensive. If Vodafone considered a third block in 900MHz and a fifth block in 1800MHz to be substitutes, its bidding behaviour did not reflect a clear value difference between these two alternatives.
4.2 Why no accommodation by the marginal bidder? Second, with Telekom strongly and consistently signalling its intention to acquire three blocks in the 1800MHz band, it would seem to be clear that it would eventually fall to O2 and Vodafone to resolve conflicting demands in the 900MHz and 1800MHz bands. With Vodafone signalling very clearly that it would accept four blocks in the 1800MHz band only if it were able to acquire three blocks in the 900MHz band, and O2 seeming to have indicated very clearly that it required two blocks in the 900MHz band, both bidders should have been able to anticipate the eventual outcome much earlier and ended the auction at much lower price levels. O2 eventually turned out to be the marginal bidder in the 1800MHz band. It had to drop to two blocks to end the auction. From very early on in the auction, O2 could observe that Telekom wanted three blocks, and that Vodafone would insist on five blocks if it could not get three blocks in 900MHz. If O2 were not prepared to concede its second 900MHz block, it faced a choice of either dropping to two blocks in 1800MHz before reaching its valuation for the fourth and third block, thereby effectively accommodating Telekom and Vodafone at very low prices, or carrying on bidding for a third and fourth block in 1800MHz until reaching its valuations for these marginal blocks. O2 opted for the second approach, and even though this made the 1800MHz band more expensive for other bidders who won more blocks, it also had a detrimental impact on O2. It could have stopped competing for 1800MHz blocks around round 34 when the average price of an 1800MHz block was about €64m. At that point, both the 700MHz and 900MHz band had already been settled and O2 could have ended the auction and paid €496m for the spectrum it eventually won. At the end of the auction, the same package cost almost €1.2bn. Continuing to compete for more 1800MHz spectrum than it could realistically win, thus cost O2 about €700m. One possible explanation for O2’s behaviour is that it might have hoped to push Vodafone back to four blocks and thus be able to acquire at least three blocks in the 1800MHz band, though this does not explain bidding for four blocks. An alternative explanation would be that O2 might have been concerned about looking relatively weak in the low-price outcome, with the bid team having to explain at least internally why it did not win more 1800MHz blocks when this spectrum was so cheap. A third, and related, explanation could be that, anticipating competition to focus on the 1800MHz band, O2 might have been less concerned about price increases as these would hurt other bidders winning a larger number of blocks more than O2 if it eventually had to settle for two blocks. Although failing to end the auction with the low-price outcome cost O2 around €700m, carrying on was much more expensive for Telekom (paying around €950m more) and Vodafone (paying almost €1.3bn more).21 This concern about relative performance might also explain why Vodafone resorted to retaliatory bidding that drove up prices in the sub-1GHz band (see below). If it is the case that bid teams may be more
21
Differences in prices exclude the cost of L-band spectrum.
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concerned about relative performance than obtaining a given outcome at the lowest cost, this would indicate a principal-agent issue where the incentives facing those that make bidding decisions may not be perfectly aligned with the surplus maximisation objective commonly attributed to firms.
4.3 Retaliation: exhausting budget or sharing pain? Prices for 700MHz spectrum eventually ended up at more than twice their initial level even though there was no genuinely conflicting demand. The final outcome was identical to the first round and the band did not see any bidding activity for the first 150 or so rounds. Why did Vodafone decide to drive up prices for this band through what can only be described as retaliatory bidding given that excess demand needed to be resolved in other bands? Vodafone’s decision to unsettle the allocation in 700MHz and 900MHz when O2 did not drop its demand in 1800MHz could have potentially been an attempt to exhaust O2’s budget on other spectrum to reduce its firepower in 1800MHz. A budget constraint would mean that making O2 spend more on other spectrum could limit its ability to keep going on 1800MHz for longer. This assumes that O2 had significant marginal valuations above 2x20MHz for 1800MHz spectrum, and that it would bid up to its marginal valuation for these blocks thereby raising the price for the smaller package it would ultimately have to settle for. Although O2 ultimately responded to Vodafone’s strategy of driving up prices in the lower frequency bands, it is not clear that this can be chalked up as a success for Vodafone’s strategy. O2 could have dropped down to two blocks in 1800MHz at an average price per block of €64m, but kept bidding for four blocks until prices reached €231m and for three blocks until prices reached €241m. These are huge marginal valuations for what is essentially a fifth and sixth block (given O2’s current holdings). The decision to drop demand at these points is perhaps more likely to be the result of marginal valuations being exhausted rather than pressure from a budget constraint. The following figure shows O2’s observed maximum exposure.22 This suggests that O2 had sufficient funds available to bid up to around €2bn. When O2 decided to drop from four to three and then to two blocks, it was still below this limit. In round 165, it did not bid back for a fourth block. Its maximum exposure in this round was €1.5bn. It could have easily included a new bid for a fourth 1800MHz block at around €236m and still be well below €2bn. In round 174, it did not bid back for a third 1800MHz block. Its maximum exposure at that point was around €1.2bn and it could have accommodated a bid for a third 1800MHz of around €260m within a budget of €2bn. It thus seems reasonable to assume that the 1800MHz prices themselves had reached O2’s marginal valuation and thus made it drop rather than Vodafone’s wholesale assault in the other bands.
22 Maximum exposure is calculated as the sum of unchanged standing high bids from the previous round, raised standing high bids and new bids.
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Figure 6: O2's maximum observed exposure
Vodafone could therefore have saved a lot of money - €92m per 700MHz block and €90m per 900MHz block23 – if it had focused its bidding on 1800MHz and left the 700MHz and 900MHz alone. In total, Vodafone might have saved itself €384m. Even if prices in the 1800MHz band would have had to increase further before bidding came to an end, resolving excess demand through such an increase without any further bidding in the 700MHz and the 900MHz band after round 29 would have been a cheaper option for all concerned. The table below shows the savings relative to the actual outcome that would have resulted if excess demand in the 1800MHz band had been resolved without further bidding in the sub-1GHz band (ignoring the 1500MHz band) for different prices of 1800MHz spectrum. Specifically, this shows the difference in total payments between the actual amounts paid for spectrum in the 700MHz, 900MHz and 1800MHz bands and the amounts that winners would have had to pay if the prices of 1800MHz spectrum had increased to the levels specified. There would have been savings for bidders overall even if the price of 1800MHz spectrum had increased by a further 50% relative to the actual level24. At that point, the benefits would have become increasingly distorted in favour of Telekom and O2 because they ended up with less spectrum in this band than Vodafone. Driving up prices in order to reduce differences in relative performance could thus provide an explanation for Vodafone using the 700MHz band for retaliatory bidding and switching demand back to the 900MHz band in a manner that does not appear to reflect substitutability based on relative prices.
23 700MHz had settled at reserve of €75m and 900MHz had settled in round 30 at an average price of €102m. Final prices were €167m and €192m, respectively. 24 This would have implied a price per MHz per pop in excess of the highest price for 1800MHz spectrum observed in recent 1800MHz auctions.
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Table 2: Potential savings (€m) if excess demand had been resolved through bidding on 1800MHz spectrum only Average price per 1800MHz block €m (€ct/MHz*pop*) 240.5 (30.1)
Total
Vodafone
Telekom
O2
1,180.4
366.2
444.0
370.3
252.6 (31.6)
1,060.2
306.1
407.9
346.2
264.6 (33.1)
939.9
245.9
371.8
322.1
276.6 (34.6)
819.6
185.8
335.7
298.1
288.7 (36.1)
699.3
125.7
299.6
274.0
300.7 (37.6)
579.1
65.5
263.6
250.0
312.7 (39.1)
458.8
5.4
227.5
225.9
324.7 (40.6)
338.5
-54.8
191.4
201.9
336.8 (42.1)
218.3
-114.9
155.3
177.8
348.8 (43.6)
98.0
-175.0
119.2
153.8
360.8 (45.1)
-22.3
-235.2
83.2
129.7
Again, concerns about relative performance might suggest that using a principal-agent framework might provide an interesting perspective on the analysis of bid decisions. 25
5 Conclusion The German mobile broadband spectrum auction held a few surprises for the various stakeholders. The Bundesnetzagentur may have been pleasantly surprised that it was spared from an outcome in which the three MNOs would have walked away with extremely valuable sub1GHz spectrum at prices that were close to, or equal to reserve. Even if the purpose of a spectrum auction is not to raise revenues, handing MNOs valuable public resources at bargain bottom prices might have triggered some criticism. Operators paid more than they could have, given that the auction format afforded them every opportunity to keep prices low. That this did not happen certainly comes at a surprise in relation to the 700MHz and 900MHz bands, were bidding appears to have been driven entirely by strategic considerations rather than a true need to resolve conflicting demand. Some of this may be due to genuine substitutability between bands. When Vodafone saw O2 competing for more than 2 blocks in 1800MHz at fairly high prices, it may have tried to signal that it would be willing to take fewer blocks in 1800MHz in return for additional 900MHz, though O2 made it equally clear pretty promptly that this would not be acceptable. Therefore, the vast majority of price increases were due to Vodafone trying either to scare off O2 or to exhaust its budget by bidding up the price in other bands, and possibly O2’s hope that it might eventually prevail in both the 900MHz and the 1800MHz bands. Even though
25 To the best of our knowledge, such an analysis is currently missing from the literature, although there is some research assessing the role that budget constraints can play in terms of aligning the incentives of bidders as agents with those of their principals who provide the funds (see Justin Burkett, 2014, Optimally Constraining a Bidder Using a Simple Budget (available at http://econtheory.org/ojs/index.php/te/article/viewForthcomingFile/1745/12177/1).
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mutually acceptable outcomes were somewhat less obvious in the existing GSM bands, there should have been plenty of opportunity to avoid unnecessary price increases. Both O2 and Vodafone could have saved substantial amounts of money – the former if it had accommodated the final outcome earlier, and the latter if it had not carried competition into bands where prices did not have to increase to establish the final outcome. The motives for the behaviour of both players are somewhat unclear, but a common theme seems to be a concern about relative performance. O2 accommodating earlier in the process would have saved others more money than it saved O2, and focusing only on the 1800MHz would have had the same effect for Vodafone. This raises an interesting question about what drives bidding decisions. If bid teams are judged by their relative performance, then allowing other bidders to do significantly better might be unpalatable, even if doing so saves money. Similarly, bid teams might feel that settling for a small amount of spectrum because this keeps prices low could be difficult to explain after the event because savings are relative to what would have happened if a bidder had not accommodated earlier. Such considerations are of course perfectly obvious for anyone who has advised bidders, but are poorly reflected in the theoretical assessment of auctions where bidders behave as rational maximisers of expected surplus. Acknowledging that real life bidders face somewhat different incentives and looking at the performance of auction formats in the context of a principal-agent setup would seem to be a fruitful area for further research.26
26
One example of work that includes principal-agent considerations into the analysis of bidding in auction is Justin Burkett, 2014, Optimally Constraining a Bidder Using a Simple Budget (available at http://econtheory.org/ojs/index.php/te/article/viewForthcomingFile/1745/12177/1).
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Annex Table 3: Standing high bidders and standing high bids in the 700MHz band Round
A
B
C
D
E
F
1
O2 75,050 (50)
O2 75,050 (50)
Vodafone 75,020 (20)
Vodafone 75,020 (20)
Telekom 75,000
Telekom 75,000
2
O2 75,050
O2 75,050
Vodafone 75,020
Vodafone 75,020
Telekom 75,000
Telekom 75,000
No changes 154
O2 75,050
O2 75,050
Vodafone 75,020
Vodafone 75,020
Telekom 75,000
Telekom 75,000
155
Vodafone 78,802
Vodafone 78,802
Vodafone 78,771
Vodafone 78,771
Telekom 75,000
Telekom 75,000
156
Vodafone 78,802
Vodafone 78,802
Vodafone 78,771
Vodafone 78,771
O2 78,850 (100)
O2 78,850 (100)
157
Vodafone 78,802
Vodafone 78,802
Telekom 82,709
Telekom 82,709
O2 78,850
O2 78,850
158
Vodafone 78,802
Vodafone 78,802
Telekom 82,709
Telekom 82,709
Vodafone 82,792
Vodafone 82,792
159
O2 82,742
O2 87,742 (5,000)
Telekom 82,709
Telekom 82,709
Vodafone 82,792
Vodafone 82,792
160
Vodafone 86,879
O2 87,742
Telekom 82,709
Telekom 82,709
Vodafone 86,931
Vodafone 86,931
161
Vodafone 86,879
O2 87,742
O2 86,844
O2 86,844
Vodafone 86,931
Vodafone 86,931
162
O2 91,222
Vodafone 92,129
Telekom 91,186
Telekom 91,186
Vodafone 86,931
Vodafone 86,931
163
Vodafone 95,783
O2 96,735
Telekom 91,186
Telekom 91,186
Vodafone 96,277 (5,000)
Vodafone 96,277 (5,000)
164
Vodafone 95,783
Vodafone 101,571
O2 95,745
O2 95,745
Vodafone 96,277
Vodafone 96,277
165
Vodafone 95,783
Vodafone 101,571
Telekom 100,532
Telekom 100,532
Vodafone 111,090 (10,000)
Vodafone 111,090 (10,000)
166
O2 100,572
O2 106,649
Telekom 100,532
Telekom 100,532
Vodafone 111,090
Vodafone 111,090
167
O2 100,572
O2 106,649
Telekom 100,532
Telekom 100,532
Vodafone 111,090
Vodafone 111,090
168
O2 100,572
O2 106,649
Telekom 100,532
Telekom 100,532
Vodafone 111,090
Vodafone 111,090
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The German mobile broadband spectrum auction: tales of mystery and retaliation
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169
Vodafone 125,600 (20,000)
Vodafone 131,981 (20,000)
Vodafone 125,558 (20,000)
Vodafone 125,558 (20,000)
Vodafone 136,644 (20,000)
Vodafone 136,644 (20,000)
170
O2 131,880
Vodafone 131,981
Telekom 131,835
O2 132,035 (200)
Vodafone 136,644
Vodafone 136,644
171
O2 131,880
Telekom 138,580
Telekom 131,835
O2 132,035
Vodafone 136,644
Vodafone 136,644
172
Vodafone 158,474 (20,000)
Vodafone 165,509 (20,000)
Vodafone 158,426 (20,000)
Vodafone 158,636 (20,000)
Vodafone 163,476 (20,000)
Vodafone 163,476 (20,000)
173
O2 166,397
Vodafone 165,509
O2 166,847 (500)
Telekom 166,567
Vodafone 163,476
Vodafone 163,476
174
O2 166,397
Vodafone 165,509
O2 166,847
Telekom 166,567
Telekom 171,649
Vodafone 163,476
Telekom 171,649
Vodafone 163,476
No changes163,476 181
O2 166,397
Vodafone 165,509
O2 166,847
Telekom 166,567
Table 4: Standing high bidders and standing high bids in the 900MHz band Round
A
B
1
O2 75,050 (50)
O2 75,050 (50)
2
O2 75,050
O2 75,050
3
O2 75,050
4
D
E
F
G
Vodafone 75,020 (20)
Vodafone 75,020 (20)
Vodafone 75,020 (20)
Telekom 75,000
Telekom 75,000
Vodafone 75,020
Vodafone 75,020
Telekom 78,771
Telekom 75,000
O2 75,050
Vodafone 78,750
Vodafone 75,020
Vodafone 75,020
Telekom 78,771
Telekom 75,000
O2 75,050
O2 75,050
Vodafone 78,750
Vodafone 75,020
Telekom 78,771
Telekom 78,771
Telekom 75,000
5
O2 75,050
O2 75,050
Vodafone 78,750
Vodafone 75,020
Telekom 78,771
Telekom 78,771
Vodafone 78,750
6
O2 75,050
O2 75,050
Vodafone 78,750
Telekom 78,771
Telekom 78,771
Telekom 78,771
Vodafone 78,750
7
O2 75,050
O2 78,812 (10)
Vodafone 78,750
Telekom 78,771
Telekom 78,771
Telekom 78,771
Vodafone 78,750
8
O2 75,050
O2 78,812
Vodafone 78,750
Vodafone 82,709
Telekom 78,771
Telekom 78,771
Vodafone 78,750
9
O2 75,050
O2 78,812
Vodafone 78,750
Vodafone 82,709
Telekom 78,771
Telekom 78,771
Telekom 82,687
10
O2 75,050
O2 78,812
Vodafone 78,750
Vodafone 82,709
Vodafone 82,709
Telekom 78,771
Telekom 82,687
11
O2 75,050
O2 78,812
O2 82,687
Vodafone 82,709
Vodafone 82,709
Telekom 78,771
Telekom 82,687
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C BNetzA
The German mobile broadband spectrum auction: tales of mystery and retaliation
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12
O2 75,050
Telekom 82,752
O2 82,687
Vodafone 82,709
Vodafone 82,709
Vodafone 82,709
Telekom 82,687
13
O2 75,050
Telekom 82,752
Telekom 86,821
Vodafone 82,709
Vodafone 82,709
O2 86,844
Telekom 82,687
14
O2 75,050
Telekom 82,752
Telekom 86,821
Vodafone 82,709
Vodafone 82,709
O2 86,844
Vodafone 86,821
15
O2 75,050
Telekom 82,752
Telekom 86,821
Telekom 86,844
O2 86,844
O2 86,844
Vodafone 86,821
16
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 86,844
O2 86,844
O2 86,844
Vodafone 86,821
17
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 86,844
O2 86,844
Telekom 91,186
Telekom 91,162
18
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 86,844
Vodafone 91,186
Telekom 91,186
Telekom 91,162
19
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 101,186 (10,000)
O2 95,755 (10)
Telekom 105,745 (10,000)
Telekom 105,720 (10,000)
20
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 101,186
Vodafone 100,542
Telekom 105,745
Telekom 105,720
21
O2 75,050
Vodafone 86,889
Vodafone 91,162
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
22
Vodafone 78,802
Vodafone 86,889
Vodafone 91,162
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
23
O2 82,742
Vodafone 86,889
Vodafone 91,162
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
24
Vodafone 86,879
Vodafone 86,889
Vodafone 91,162
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
25
Vodafone 86,879
O2 91,233
O2 95,720
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
26
Vodafone 86,879
Vodafone 95,794
Vodafone 100,506
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
27
Vodafone 86,879
O2 100,583
Vodafone 100,506
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
28
Vodafone 86,879
Vodafone 105,612
Vodafone 100,506
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
29
O2 91,222
Vodafone 105,612
Vodafone 100,506
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
No changes 73
O2 91,222
Vodafone 105,612
Vodafone 100,506
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
74
Vodafone 100,783 (5,000)
Vodafone 115,892 (5,000)
Vodafone 110,531 (5,000)
Telekom 101,186
O2 105,569
Telekom 105,745
Telekom 105,720
75
Vodafone 100,783
Vodafone 115,892
Vodafone 110,531
O2 106,245
O2 105,569
Telekom 105,745
Telekom 105,720
76
Vodafone 100,783
Vodafone 115,892
Vodafone 110,531
O2 106,245
Telekom 110,847
Telekom 105,745
Telekom 105,720
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The German mobile broadband spectrum auction: tales of mystery and retaliation
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77
Vodafone 100,783
Vodafone 115,892
Vodafone 110,531
O2 106,245
Telekom 110,847
O2 116,032 (5,000)
O2 116,006 (5,000)
78
Vodafone 100,783
Vodafone 115,892
Telekom 116,057
Telekom 111,557
Telekom 110,847
O2 116,032
O2 116,006
79
Vodafone 100,783
Vodafone 115,892
Telekom 116,057
Telekom 111,557
Vodafone 116,389
O2 116,032
O2 116,006
80
Vodafone 100,783
Telekom 121,686
Telekom 116,057
Telekom 111,557
Vodafone 116,389
O2 116,032
O2 116,006
81
Vodafone 100,783
Telekom 121,686
Telekom 116,057
Vodafone 117,134
Vodafone 116,389
O2 116,032
O2 116,006
82
O2 105,822
Telekom 121,686
Telekom 116,057
Vodafone 117,134
Vodafone 116,389
O2 116,032
Telekom 121,806
83
Vodafone 111,113
Telekom 121,686
Telekom 116,057
Vodafone 117,134
Vodafone 116,389
O2 116,032
Telekom 121,806
84
O2 116,668
Telekom 121,686
Telekom 116,057
Vodafone 117,134
Vodafone 116,389
O2 116,032
Telekom 121,806
No changes 122
O2 116,668
Telekom 121,686
Telekom 116,057
Vodafone 117,134
Vodafone 116,389
O2 116,032
Telekom 121,806
123
O2 116,668
Telekom 121,686
Telekom 116,057
Vodafone 127,990 (5,000)
Vodafone 127,208 (5,000)
Vodafone 126,833 (5,000)
Telekom 121,806
124
O2 116,668
Telekom 121,686
O2 121,859
Vodafone 127,990
Vodafone 127,208
Vodafone 126,833
Telekom 121,806
125
O2 116,668
Telekom 127,770
Telekom 127,951
Vodafone 127,990
Vodafone 127,208
Vodafone 126,833
Telekom 127,896
126
O2 116,668
Telekom 127,770
Telekom 127,951
Vodafone 127,990
Vodafone 127,208
O2 133,174
Telekom 127,896
127
O2 116,668
Vodafone 134,158
Telekom 127,951
Vodafone 127,990
Vodafone 127,208
O2 133,174
Telekom 127,896
128
O2 116,668
Vodafone 134,158
Telekom 127,951
Vodafone 127,990
Telekom 133,568
O2 133,174
Telekom 127,896
129
O2 116,668
Vodafone 134,158
Telekom 127,951
Vodafone 127,990
Telekom 133,568
O2 133,174
Vodafone 134,290
130
O2 116,668
Vodafone 134,158
Telekom 127,951
Telekom 134,389
Telekom 133,568
O2 133,174
Vodafone 134,290
131
O2 116,668
Vodafone 134,158
Vodafone 134,348
Telekom 134,389
Telekom 133,568
O2 133,174
Vodafone 134,290
132
O2 116,668
Vodafone 134,158
Vodafone 134,348
Telekom 134,389
Telekom 133,568
Telekom 139,832
Vodafone 134,290
133
O2 116,668
Vodafone 134,158
Vodafone 134,348
Telekom 134,389
Telekom 140,246
Telekom 139,832
Vodafone 134,290
134
O2 116,668
Telekom 140,865
Vodafone 134,348
Telekom 134,389
O2 140,246
Telekom 139,832
Vodafone 134,290
135
O2 116,668
Telekom 140,865
Vodafone 134,348
Telekom 134,389
Vodafone 147,258
Telekom 139,832
Vodafone 134,290
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
22
136
O2 116,668
Telekom 140,865
Vodafone 134,348
Telekom 134,389
O2 154,620
Telekom 139,832
Vodafone 134,290
137
Vodafone 122,501
Telekom 140,865
Vodafone 134,348
Telekom 134,389
O2 154,620
Telekom 139,832
Vodafone 134,290
138
Vodafone 122,501
Telekom 140,865
O2 151,065 (10,000)
O2 151,108 (10,000)
O2 154,620
Telekom 139,832
Vodafone 134,290
139
Vodafone 122,501
Telekom 140,865
O2 151,065
O2 151,108
O2 154,620
Vodafone 146,823
Telekom 141,004
140
Vodafone 122,501
Vodafone 147,908
O2 151,065
O2 151,108
O2 154,620
Telekom 154,164
Telekom 141,004
141
Vodafone 122,501
Telekom 155,303
O2 151,065
O2 151,108
O2 154,620
Telekom 154,164
Vodafone 148,054
142
Vodafone 122,501
Telekom 155,303
Vodafone 158,618
O2 151,108
O2 154,620
Telekom 154,164
Telekom 155,456
143
Vodafone 122,501
Telekom 155,303
Vodafone 158,618
Vodafone 158,663
O2 154,620
Telekom 154,164
Telekom 155,456
144
O2 128,626
Telekom 155,303
Vodafone 158,618
Vodafone 158,663
O2 154,620
Telekom 154,164
Telekom 155,456
145
Vodafone 135,057
Telekom 155,303
Vodafone 158,618
Vodafone 158,663
O2 154,620
Telekom 154,164
Telekom 155,456
146
Vodafone 135,057
O2 173,068 (10,000)
Vodafone 158,618
Vodafone 158,663
O2 172,351 (10,000)
O2 171,872 (10,000)
Telekom 155,456
147
Vodafone 135,057
O2 173,068
Telekom 166,548
Telekom 166,596
O2 172,351
O2 171,872
Telekom 155,456
148
Vodafone 135,057
O2 173,068
Vodafone 174,875
Telekom 166,596
O2 172,351
O2 171,872
Vodafone 163,228
149
Vodafone 135,057
O2 173,068
Vodafone 174,875
Telekom 166,596
O2 172,351
Telekom 180,465
Telekom 171,389
150
Vodafone 135,057
O2 173,068
Vodafone 174,875
Vodafone 174,925
O2 172,351
Telekom 180,465
Telekom 171,389
151
Vodafone 135,057
O2 173,068
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
152
O2 141,809
O2 173,068
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
153
Vodafone 168,899 (20,000)
O2 173,068
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
154
O2 177,343
O2 201,721 (20,000)
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
No changes 166
O2 177,343
O2 201,721
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
167
Vodafone 186,210
O2 201,721
Vodafone 174,875
Vodafone 174,925
Telekom 180,968
Telekom 180,465
Telekom 171,389
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
23
168
Vodafone 186,210
O2 201,721
O2 193,618 (10,000)
Vodafone 174,925
Telekom 180,968
Telekom 180,465
O2 189,958 (10,000)
169
Vodafone 186,210
O2 201,721
O2 193,618
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
170
Vodafone 186,210
O2 201,721
O2 193,618
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
171
Vodafone 186,210
O2 201,721
O2 193,618
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
172
Vodafone 186,210
O2 201,721
O2 193,618
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
173
O2 195,520
BNetzA
BNetzA
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
174
O2 195,520
Vodafone 211,807
Vodafone 203,298
Telekom 183,671
Telekom 180,968
Telekom 180,465
O2 189,958
Telekom 180,968
Telekom 180,465
O2 189,958
No changes 181
O2 195,520
Vodafone 211,807
Vodafone 203,298
Telekom 183,671
Table 5: Standing high bidders and standing high bids in the 1800MHz band Round
A
B
C
D
E
F
G
H
I
J
1
Telekom 37,500
O2 37,500
O2 37,500
O2 37,500
O2 37,500
O2 37,500
BNetzA
BNetzA
BNetzA
BNetzA
2
Vodafone 39,395 (20)
O2 37,500
O2 37,500
O2 37,500
O2 37,500
O2 37,500
Vodafone 37,520 (20)
Vodafone 37,520 (20)
Vodafone 37,520 (20)
3
Vodafone 39,395
O2 37,500
O2 37,500
O2 37,500
O2 37,500
Telekom 39,427 (50)
Telekom 39,396
Telekom 39,396
Telekom 39,396
BNetzA
4
O2 41,364
Vodafone 39,427 (50)
Vodafone 39,427 (50)
Vodafone 39,427 (50)
O2 37,550
Telekom 39,427
Telekom 39,396
Telekom 39,396
Telekom 39,396
BNetzA
5
O2 41,364
Vodafone 39,427
Vodafone 39,427
Vodafone 39,427
Vodafone 39,427
Telekom 39,427
O2 41,365
O2 41,365
O2 41,365
BNetzA
6
O2 41,364
Telekom 41,398
Telekom 41,398
Telekom 41,398
O2 41,398
Telekom 39,427
O2 41,365
O2 41,365
O2 41,365
BNetzA
7
Vodafone 43,432
Telekom 41,398
Telekom 41,398
Telekom 41,398
O2 41,398
Vodafone 41,398
Vodafone 43,433
Vodafone 43,433
O2 41,365
BNetzA
8
Vodafone 43,432
O2 43,467
O2 43,467
Telekom 41,398
O2 41,398
O2 43,467
Vodafone 43,433
Vodafone 43,433
Telekom 43,433
BNetzA
9
Vodafone 43,432
O2 43,467
O2 43,467
Vodafone 43,467
Telekom 43,467
O2 43,467
Telekom 45,604
Vodafone 43,433
Telekom 43,433
BNetzA
10
O2 45,603
O2 43,467
O2 43,467
Vodafone 43,467
Telekom 43,467
O2 43,467
Telekom 45,604
Vodafone 43,433
O2 45,604
BNetzA
11
O2 45,603
Vodafone 45,640
O2 43,467
Vodafone 43,467
Vodafone 45,640
Telekom 45,640
Telekom 45,604
Telekom 45,604
O2 45,604
BNetzA
12
O2 45,603
Vodafone 45,640
Vodafone 45,640
O2 45,640
Vodafone 45,640
Telekom 45,640
O2 47,884
Telekom 45,604
O2 45,604
BNetzA
September 2015
BNetzA
The German mobile broadband spectrum auction: tales of mystery and retaliation
24
13
Vodafone 47,883
Vodafone 45,640
Vodafone 45,640
O2 45,640
Vodafone 45,640
Telekom 45,640
O2 47,884
O2 47,884
Telekom 47,884
BNetzA
14
Vodafone 47,883
Vodafone 45,640
O2 47,922
Telekom 47,922
Telekom 47,922
O2 47,922
O2 47,884
O2 47,884
Telekom 47,884
BNetzA
15
Vodafone 47,883
Telekom 47,922
O2 47,922
Telekom 47,922
Telekom 47,922
O2 47,922
Vodafone 50,278
O2 47,884
Vodafone 50,278
BNetzA
16
Telekom 50,277
O2 50,318
O2 47,922
Telekom 47,922
Telekom 47,922
O2 47,922
Vodafone 50,278
Vodafone 50,278
Vodafone 50,278
BNetzA
17
Telekom 50,277
O2 50,318
Telekom 50,318
Vodafone 50,318
O2 50,318
O2 47,922
Vodafone 50,278
Vodafone 50,278
Vodafone 50,278
BNetzA
18
O2 52,790
O2 50,318
Telekom 50,318
Vodafone 50,318
O2 50,318
Telekom 50,318
Telekom 52,791
Vodafone 50,278
Vodafone 50,278
BNetzA
19
O2 52,790
O2 50,318
Telekom 62,833 (10,000)
Vodafone 50,318
O2 50,318
Telekom 62,833 (10,000)
Telekom 65,430 (10,000)
O2 52,791
O2 52,791
BNetzA
20
O2 52,790
Vodafone 52,833
Telekom 62,833
Vodafone 50,318
Vodafone 52,833
Telekom 62,833
Telekom 65,430
O2 52,791
O2 52,791
Vodafone 37,500
21
O2 52,790
Vodafone 52,833
Telekom 62,833
Vodafone 50,318
Vodafone 52,833
Telekom 62,833
O2 68,701
O2 52,791
O2 52,791
Vodafone 37,500
22
O2 52,790
Vodafone 52,833
Telekom 62,833
Telekom 52,833
Vodafone 52,833
Telekom 62,833
O2 68,701
O2 52,791
O2 52,791
Vodafone 37,500
23
O2 52,790
Vodafone 52,833
Telekom 62,833
Vodafone 55,474
Vodafone 52,833
Telekom 62,833
O2 68,701
O2 52,791
O2 52,791
Vodafone 37,500
24
Telekom 55,429
Vodafone 52,833
Telekom 62,833
Vodafone 55,474
Vodafone 52,833
Telekom 62,833
O2 68,701
O2 52,791
O2 52,791
Vodafone 37,500
25
Telekom 55,429
O2 55,474
Telekom 62,833
Vodafone 55,474
Vodafone 52,833
Telekom 62,833
O2 68,701
O2 52,791
O2 52,791
Vodafone 37,500
26
Telekom 55,429
O2 55,474
Telekom 62,833
Vodafone 55,474
Vodafone 52,833
Telekom 62,833
O2 68,701
Vodafone 55,430
O2 52,791
Vodafone 37,500
27
Telekom 55,429
O2 55,474
Telekom 62,833
Vodafone 55,474
O2 55,474
Telekom 62,833
O2 68,701
Vodafone 55,430
O2 52,791
Vodafone 37,500
28
Telekom 55,429
O2 55,474
Telekom 62,833
Vodafone 55,474
O2 55,474
Telekom 62,833
O2 68,701
Vodafone 55,430
Vodafone 55,430
Vodafone 37,500
29
O2 58,200
O2 55,474
Telekom 62,833
Vodafone 55,474
O2 55,474
Telekom 62,833
O2 68,701
Vodafone 55,430
Vodafone 55,430
Vodafone 37,500
30
O2 58,200
Vodafone 58,247
Telekom 62,833
Vodafone 55,474
O2 55,474
Telekom 62,833
O2 68,701
Telekom 58,201
Vodafone 55,430
Vodafone 37,500
31
O2 58,200
Vodafone 58,247
Telekom 62,833
Vodafone 55,474
Vodafone 58,247
Telekom 62,833
O2 68,701
O2 61,111
Vodafone 55,430
Vodafone 37,500
32
Telekom 66,110 (5,000)
Vodafone 58,247
Telekom 70,974 (5,000)
Vodafone 55,474
Vodafone 58,247
Telekom 70,974 (5,000)
O2 68,701
O2 61,111
O2 58,201
Vodafone 37,500
33
Telekom 66,110
Vodafone 58,247
O2 74,522
Vodafone 55,474
Vodafone 58,247
O2 74,522
O2 68,701
O2 61,111
Vodafone 61,111
Vodafone 37,500
34
Telekom 74,415 (5,000)
Vodafone 58,247
O2 74,522
Vodafone 55,474
Vodafone 58,247
O2 74,522
Telekom 77,136 (5,000)
Telekom 69,166 (5,000)
Vodafone 61,111
Vodafone 37,500
35
Telekom 74,415
Vodafone 58,247
O2 74,522
O2 58,247
O2 61,159
O2 74,522
Telekom 77,136
Telekom 69,166
Vodafone 61,111
Vodafone 37,500
36
Telekom 74,415
Vodafone 58,247
O2 74,522
Vodafone 61,159
Vodafone 64,216
O2 74,522
Telekom 77,136
Telekom 69,166
Vodafone 61,111
Vodafone 37,500
37
Telekom 74,415
O2 61,159
O2 74,522
Vodafone 61,159
Vodafone 64,216
O2 74,522
Telekom 77,136
Telekom 69,166
O2 64,166
Vodafone 37,500
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
25
38
Telekom 74,415
Vodafone 64,216
O2 74,522
Vodafone 61,159
Vodafone 64,216
O2 74,522
Telekom 77,136
Telekom 69,166
Vodafone 67,374
Vodafone 37,500
39
Telekom 74,415
Vodafone 64,216
O2 74,522
O2 64,216
O2 67,426
O2 74,522
Telekom 77,136
Telekom 69,166
Vodafone 67,374
Vodafone 37,500
40
Telekom 74,415
Vodafone 64,216
O2 74,522
Vodafone 67,426
Vodafone 70,797
O2 74,522
Telekom 77,136
Telekom 69,166
Vodafone 67,374
Vodafone 37,500
41
Telekom 74,415
O2 69,426 (2,000)
O2 78,248
Vodafone 67,426
Vodafone 70,797
O2 78,248
Telekom 77,136
O2 74,624 (2,000)
Vodafone 67,374
Vodafone 37,500
42
Telekom 88,135 (10,000)
Vodafone 72,897
O2 78,248
Vodafone 67,426
Vodafone 70,797
O2 78,248
Telekom 90,992 (10,000)
Telekom 88,355 (10,000)
Vodafone 67,374
Vodafone 37,500
43
Telekom 88,135
Vodafone 72,897
O2 78,248
O2 70,797
Vodafone 70,797
O2 78,248
Telekom 90,992
Telekom 88,355
O2 70,742
Vodafone 37,500
44
Telekom 88,135
Vodafone 72,897
O2 78,248
Vodafone 74,336
Vodafone 70,797
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 74,279
Vodafone 37,500
45
Telekom 88,135
O2 76,541
O2 78,248
Vodafone 74,336
O2 74,336
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 74,279
Vodafone 37,500
46
Telekom 88,135
Vodafone 80,368
O2 78,248
Vodafone 74,336
Vodafone 78,052
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 74,279
Vodafone 37,500
47
Telekom 88,135
Vodafone 80,368
O2 78,248
O2 78,052
Vodafone 78,052
O2 78,248
Telekom 90,992
Telekom 88,355
O2 77,992
Vodafone 37,500
48
Telekom 88,135
Vodafone 80,368
O2 78,248
Vodafone 81,954
Vodafone 78,052
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 81,891
Vodafone 37,500
49
Telekom 88,135
O2 84,386
O2 78,248
Vodafone 81,954
O2 81,954
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 81,891
Vodafone 37,500
50
Vodafone 92,541
Vodafone 88,605
O2 78,248
Vodafone 81,954
O2 81,954
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 81,891
Vodafone 37,500
51
Vodafone 92,541
Vodafone 88,605
O2 78,248
Vodafone 81,954
O2 81,954
O2 78,248
Telekom 90,992
Telekom 88,355
O2 85,985
Telekom 39,375
52
Vodafone 92,541
Vodafone 88,605
O2 78,248
Vodafone 81,954
O2 81,954
O2 78,248
Telekom 90,992
Telekom 88,355
Vodafone 90,284
Vodafone 41,343
53
Vodafone 92,541
Vodafone 88,605
O2 78,248
O2 86,051
O2 81,954
Telekom 82,160
Telekom 90,992
Telekom 88,355
Vodafone 90,284
Vodafone 41,343
54
Vodafone 92,541
Vodafone 88,605
O2 78,248
O2 86,051
O2 81,954
Vodafone 86,288 (20)
Telekom 90,992
Telekom 88,355
Vodafone 90,284
Vodafone 41,343
55
Vodafone 92,541
Vodafone 88,605
Telekom 87,160 (5,000)
O2 86,051
O2 81,954
Vodafone 86,288
Telekom 100,541 (5,000)
Telekom 97,772 (5,000)
Vodafone 90,284
Vodafone 41,343
56
Vodafone 92,541
Vodafone 88,605
O2 91,518
O2 86,051
O2 81,954
O2 90,602
Telekom 100,541
Telekom 97,772
Vodafone 90,284
Vodafone 41,343
57
Vodafone 92,541
Vodafone 88,605
O2 91,518
Telekom 90,353
Vodafone 86,051
O2 90,602
Telekom 100,541
Telekom 97,772
Vodafone 90,284
Vodafone 41,343
58
Vodafone 92,541
O2 93,035
O2 91,518
O2 94,870
O2 90,353
O2 90,602
Telekom 100,541
Telekom 97,772
Vodafone 90,284
Vodafone 41,343
59
Vodafone 92,541
O2 93,035
O2 91,518
O2 94,870
Vodafone 94,870
Vodafone 95,132
Telekom 100,541
Telekom 97,772
Telekom 94,798
Vodafone 41,343
60
O2 97,168
O2 93,035
Vodafone 96,093
O2 94,870
Vodafone 94,870
Vodafone 95,132
Telekom 100,541
Telekom 97,772
Telekom 94,798
Vodafone 41,343
61
O2 97,168
Vodafone 97,686
Vodafone 96,093
O2 94,870
Vodafone 94,870
Vodafone 95,132
Telekom 100,541
Telekom 97,772
O2 99,537
Vodafone 41,343
62
O2
Vodafone
Vodafone
Telekom
O2
Vodafone
Telekom
Telekom
O2
Vodafone
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
26
97,168
97,686
96,093
99,613
99,613
95,132
100,541
97,772
99,537
41,343
63
O2 97,168
Vodafone 97,686
Vodafone 96,093
Telekom 99,613
O2 99,613
Vodafone 99,908 (20)
Telekom 100,541
Vodafone 102,680 (20)
O2 99,537
Vodafone 41,343
64
Telekom 107,026 (5,000)
Vodafone 97,686
O2 100,897
Telekom 109,593 (5,000)
O2 99,613
Vodafone 99,908
Telekom 110,568 (5,000)
Vodafone 102,680
O2 99,537
Vodafone 41,343
65
Telekom 107,026
O2 102,570
O2 100,897
Telekom 109,593
O2 99,613
Vodafone 99,908
Telekom 110,568
Vodafone 102,680
Vodafone 104,513
Vodafone 41,343
66
Telekom 107,026
O2 102,570
O2 100,897
Telekom 109,593
Vodafone 104,593
O2 104,903
Telekom 110,568
Vodafone 102,680
Vodafone 104,513
Vodafone 41,343
67
Telekom 107,026
O2 102,570
Vodafone 105,941
Telekom 109,593
Vodafone 104,593
O2 104,903
Telekom 110,568
O2 107,814
Vodafone 104,513
Vodafone 41,343
68
Telekom 107,026
Vodafone 107,698
Vodafone 105,941
Telekom 109,593
Vodafone 104,593
O2 104,903
Telekom 110,568
O2 107,814
O2 109,738
Vodafone 41,343
69
Telekom 107,026
Vodafone 107,698
Vodafone 105,941
Telekom 109,593
O2 109,822
Vodafone 110,148
Telekom 110,568
O2 107,814
O2 109,738
Vodafone 41,343
70
Vodafone 112,377
Vodafone 107,698
O2 111,238
Telekom 109,593
O2 109,822
Vodafone 110,148
Telekom 110,568
O2 107,814
O2 109,738
Vodafone 41,343
71
Vodafone 112,377
Telekom 113,082
O2 111,238
Telekom 109,593
O2 109,822
Vodafone 110,148
Telekom 110,568
Vodafone 113,204
O2 109,738
Vodafone 41,343
72
Vodafone 112,377
Telekom 113,082
O2 111,238
Vodafone 115,072
O2 109,822
Vodafone 110,148
Telekom 110,568
Vodafone 113,204
O2 109,738
Vodafone 41,343
73
Vodafone 112,377
Telekom 123,736 (5,000)
O2 111,238
Vodafone 115,072
O2 109,822
O2 115,655
Telekom 121,096 (5,000)
Vodafone 113,204
Telekom 120,224 (5,000)
Vodafone 41,343
74
Vodafone 122,995 (5,000)
Telekom 123,736
O2 111,238
Vodafone 125,825 (5,000)
O2 109,822
O2 115,655
Telekom 121,096
Vodafone 123,864 (5,000)
Telekom 120,224
Vodafone 48,410 (5,000)
75
Vodafone 122,995
Telekom 123,736
O2 111,238
Vodafone 125,825
O2 109,822
O2 115,655
Telekom 121,096
Vodafone 123,864
O2 126,235
Vodafone 48,410
76
Vodafone 122,995
Telekom 129,922
Telekom 121,799 (5,000)
Vodafone 125,825
Telekom 120,313 (5,000)
O2 115,655
Telekom 132,150 (5,000)
Vodafone 123,864
O2 126,235
Vodafone 48,410
77
Vodafone 122,995
Telekom 129,922
O2 127,888
Vodafone 125,825
O2 126,328
O2 115,655
Telekom 132,150
Vodafone 123,864
O2 126,235
Vodafone 48,410
78
Vodafone 122,995
Telekom 129,922
O2 127,888
Vodafone 125,825
O2 126,328
Telekom 121,437
Telekom 132,150
Vodafone 123,864
O2 126,235
Telekom 50,830
79
Vodafone 122,995
Telekom 129,922
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 132,150
Vodafone 123,864
O2 126,235
Vodafone 53,371
80
Vodafone 122,995
Telekom 129,922
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 132,150
Vodafone 123,864
O2 126,235
Telekom 56,039
81
Vodafone 122,995
Telekom 129,922
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 132,150
Vodafone 123,864
O2 126,235
Vodafone 58,840
82
Telekom 134,144 (5,000)
Telekom 141,418 (5,000)
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757 (5,000)
Vodafone 123,864
O2 126,235
Telekom 61,782
83
Telekom 134,144
Telekom 141,418
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 123,864
Vodafone 132,546
Vodafone 64,871
84
Telekom 134,144
Telekom 141,418
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 123,864
Vodafone 132,546
Vodafone 64,871
85
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 123,864
Vodafone 132,546
Vodafone 64,871
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
27
86
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757
Telekom 130,057
Vodafone 132,546
Vodafone 64,871
87
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 125,825
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 136,559
Vodafone 132,546
Vodafone 64,871
88
Vodafone 140,851
Telekom 141,418
O2 127,888
Telekom 132,116
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 136,559
Vodafone 132,546
Vodafone 64,871
89
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 138,721
O2 126,328
O2 127,508
Telekom 143,757
Vodafone 136,559
Vodafone 132,546
Vodafone 64,871
90
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 138,721
Telekom 132,644
O2 127,508
Telekom 143,757
Vodafone 136,559
Vodafone 132,546
Vodafone 64,871
91
Vodafone 140,851
Telekom 141,418
O2 127,888
Vodafone 138,721
O2 139,276
O2 127,508
Telekom 143,757
Vodafone 136,559
O2 139,173
Vodafone 64,871
92
Vodafone 140,851
Telekom 141,418
Telekom 134,282
Vodafone 138,721
O2 139,276
Vodafone 133,883
Telekom 143,757
Vodafone 136,559
O2 139,173
Telekom 68,114
93
Vodafone 140,851
Telekom 158,488 (10,000)
Telekom 150,996 (10,000)
O2 145,667 (10)
O2 146,249 (10)
Vodafone 133,883
Telekom 160,944 (10,000)
Vodafone 136,559
O2 146,141 (10)
Vodafone 71,519
94
Vodafone 140,851
Telekom 158,488
Telekom 150,996
Vodafone 152,950
O2 146,249
Vodafone 133,883
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 71,519
95
Vodafone 140,851
Telekom 158,488
Telekom 150,996
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 71,519
96
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 71,519
97
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Telekom 75,094
98
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 78,848
99
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Telekom 82,790
100
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 86,929
101
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Telekom 91,275
102
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 95,838
103
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Telekom 100,629
104
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Vodafone 136,559
O2 146,141
Vodafone 105,660
105
Vodafone 140,851
Telekom 158,488
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 160,944
Telekom 143,386
O2 146,141
Vodafone 105,660
106
Vodafone 140,851
Telekom 176,412 (10,000)
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 178,991 (10,000)
Telekom 160,555 (10,000)
O2 146,141
Vodafone 105,660
107
Vodafone 140,851
Telekom 176,412
Vodafone 158,545
Vodafone 152,950
O2 146,249
O2 140,577
Telekom 178,991
Vodafone 168,582
O2 146,141
Vodafone 105,660
108
Vodafone 140,851
Telekom 176,412
Vodafone 158,545
Vodafone 152,950
O2 146,249
Telekom 157,605 (10,000)
Telekom 178,991
Vodafone 168,582
O2 146,141
Vodafone 105,660
109
Vodafone 140,851
Telekom 176,412
Vodafone 158,545
O2 160,597
O2 146,249
Telekom 157,605
Telekom 178,991
Vodafone 168,582
O2 146,141
Vodafone 105,660
110
Vodafone 140,851
Telekom 176,412
Vodafone 158,545
O2 160,597
O2 146,249
Telekom 157,605
Telekom 178,991
Vodafone 168,582
Vodafone 153,448
Vodafone 105,660
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
28
111
O2 147,893
Telekom 176,412
Vodafone 158,545
O2 160,597
O2 146,249
O2 165,485
Telekom 178,991
Vodafone 168,582
Vodafone 153,448
Vodafone 105,660
112
O2 147,893
Telekom 176,412
Vodafone 158,545
O2 160,597
Telekom 163,561 (10,000)
O2 165,485
Telekom 178,991
Vodafone 168,582
Vodafone 153,448
Vodafone 105,660
113
Vodafone 155,287
Telekom 176,412
Vodafone 158,545
O2 160,597
Telekom 163,561
O2 165,485
Telekom 178,991
Vodafone 168,582
Vodafone 153,448
Vodafone 105,660
114
O2 164,051 (1,000)
Telekom 176,412
Vodafone 158,545
O2 160,597
Telekom 163,561
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120 (5,000)
Vodafone 105,660
115
O2 164,051
Telekom 176,412
Vodafone 158,545
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 105,660
116
O2 164,051
Telekom 176,412
Telekom 166,472
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 105,660
117
Vodafone 172,253
Telekom 176,412
Telekom 166,472
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 105,660
118
Vodafone 172,253
Telekom 176,412
O2 174,795
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 105,660
119
Vodafone 172,253
Telekom 176,412
O2 174,795
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Telekom 110,943
120
Vodafone 172,253
Telekom 176,412
O2 174,795
Vodafone 168,626
Vodafone 171,739
O2 165,485
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 116,490
121
Vodafone 172,253
Telekom 176,412
O2 174,795
Vodafone 168,626
Vodafone 171,739
Telekom 173,759
Telekom 178,991
Vodafone 168,582
O2 166,120
Vodafone 116,490
122
Vodafone 172,253
Telekom 176,412
O2 174,795
O2 177,057
Vodafone 171,739
Telekom 173,759
Telekom 178,991
O2 177,011
O2 174,426
Vodafone 116,490
123
Vodafone 185,865 (5,000)
Telekom 195,232 (10,000)
O2 174,795
O2 177,057
Vodafone 185,325 (5,000)
Telekom 192,446 (10,000)
Telekom 197,940 (10,000)
O2 177,011
Vodafone 188,147 (5,000)
Vodafone 127,314 (5,000)
124
Vodafone 185,865
Telekom 195,232
O2 174,795
O2 177,057
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
125
Vodafone 185,865
Telekom 195,232
O2 174,795
Telekom 185,909
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
126
Vodafone 185,865
Telekom 195,232
O2 174,795
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
127
Vodafone 185,865
Telekom 195,232
O2 174,795
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
128
Vodafone 185,865
Telekom 195,232
Telekom 183,534
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
129
Vodafone 185,865
Telekom 195,232
O2 192,710
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 177,011
Vodafone 188,147
Vodafone 127,314
130
Vodafone 185,865
Telekom 195,232
O2 192,710
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
Telekom 185,861
Vodafone 188,147
Vodafone 127,314
131
Vodafone 185,865
Telekom 195,232
O2 192,710
O2 195,204
Vodafone 185,325
Telekom 192,446
Telekom 197,940
O2 195,154
Vodafone 188,147
Vodafone 127,314
132
Vodafone 185,865
Telekom 195,232
O2 192,710
O2 195,204
Telekom 194,591
Telekom 192,446
Telekom 197,940
O2 195,154
Vodafone 188,147
Vodafone 127,314
133
Vodafone 185,865
Telekom 195,232
O2 192,710
O2 195,204
Telekom 194,591
Vodafone 202,068
Telekom 197,940
O2 195,154
Vodafone 188,147
Vodafone 127,314
134
Telekom 205,158 (10,000)
Telekom 224,993 (20,000)
O2 192,710
O2 195,204
Telekom 214,320 (10,000)
Telekom 232,171 (20,000)
Telekom 227,837 (20,000)
Telekom 214,911 (10,000)
Telekom 207,554 (10,000)
Telekom 143,679 (10,000)
135
O2
Telekom
O2
O2
Vodafone
Telekom
Telekom
Vodafone
Vodafone
Vodafone
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
29
215,415
224,993
192,710
195,204
225,036
232,171
227,837
225,656
217,931
150,862
136
O2 215,415
Telekom 224,993
O2 192,710
O2 195,204
Vodafone 225,036
Telekom 232,171
Telekom 227,837
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
137
O2 215,415
Telekom 224,993
O2 192,710
O2 195,204
Vodafone 225,036
Telekom 232,171
Telekom 227,837
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
138
O2 215,415
O2 236,242
O2 192,710
O2 195,204
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
139
Telekom 226,185
O2 236,242
Telekom 202,345
Telekom 204,964
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
No changes 156
Telekom 226,185
O2 236,242
Telekom 202,345
Telekom 204,964
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
157
Telekom 226,185
Telekom 248,054
Telekom 202,345
Telekom 204,964
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
158
Telekom 226,185
Telekom 248,054
O2 212,462
Telekom 204,964
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
159
Telekom 226,185
Telekom 248,054
Telekom 223,085
Telekom 204,964
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
160
Telekom 226,185
Telekom 248,054
Telekom 223,085
O2 215,212
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
161
Telekom 226,185
Telekom 248,054
Telekom 223,085
Telekom 225,972
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
162
Telekom 226,185
Telekom 248,054
O2 234,239
Telekom 225,972
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
163
Telekom 226,185
Telekom 248,054
Telekom 245,950
Telekom 225,972
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
Vodafone 150,862
164
Telekom 226,185
Telekom 248,054
Telekom 245,950
O2 237,270
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Vodafone 217,931
O2 163,405 (5,000)
165
Telekom 226,185
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
O2 163,405
166
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
O2 163,405
167
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Vodafone 225,036
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
O2 163,405
168
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
O2 236,287
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
Telekom 171,575
169
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
O2 236,287
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
Telekom 171,575
170
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Telekom 248,101
O2 243,779
O2 239,228
Vodafone 225,656
Telekom 228,827
Telekom 171,575
171
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Telekom 248,101
O2 243,779
O2 239,228
O2 236,938
Telekom 228,827
Vodafone 180,153
172
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Telekom 248,101
O2 243,779
O2 239,228
O2 236,938
Telekom 228,827
Vodafone 180,153
173
Vodafone 237,494
Telekom 248,054
Telekom 245,950
Vodafone 249,133
Telekom 248,101
BNetzA
O2 239,228
Telekom 248,784
Telekom 228,827
Vodafone 180,153
174
Vodafone 237,494
Telekom 248,054
Vodafone 258,247
Vodafone 249,133
Telekom 248,101
Vodafone 255,967
O2 239,228
Telekom 248,784
O2 240,288 (20)
Vodafone 180,153
No changes
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
181
Vodafone 237,494
Telekom 248,054
Vodafone 258,247
Vodafone 249,133
Telekom 248,101
Vodafone 255,967
O2 239,228
Telekom 248,784
30
O2 240,288
Table 6: Standing high bidders and standing high bids in the 1500MHz band Round
A
B
C
D
E
F
G
H
1
Telekom 18,750
Telekom 18,750
Telekom 18,750
Telekom 18,750
Vodafone 18,770
Vodafone 18,770
Vodafone 18,770
Vodafone 18,770
2
Telekom 18,750
Telekom 18,750
Telekom 18,750
Telekom 18,750
Vodafone 18,770
Vodafone 18,770
Vodafone 18,770
Vodafone 18,770
No changes 11
Telekom 18,750
Telekom 18,750
Telekom 18,750
Telekom 18,750
Telekom 19,708
Telekom 19,708
Vodafone 18,770
Vodafone 18,770
12
Vodafone 19,687
Vodafone 19,687
Telekom 18,750
Telekom 18,750
Telekom 19,708
Telekom 19,708
Vodafone 18,770
Vodafone 18,770
No changes 18
Vodafone 19,687
Vodafone 19,687
Telekom 18,750
Telekom 18,750
Telekom 19,708
Telekom 19,708
Vodafone 18,770
Vodafone 18,770
19
Vodafone 19,687
Vodafone 19,687
Telekom 18,750
Telekom 18,750
Telekom 19,708
Telekom 19,708
Telekom 19,708
Telekom 19,708
20
Vodafone 19,687
Vodafone 19,687
Vodafone 19,687
Vodafone 19,687
Telekom 19,708
Telekom 19,708
Telekom 19,708
Telekom 19,708
21
Vodafone 19,687
Vodafone 19,687
Telekom 20,671
Telekom 20,671
Telekom 19,708
Telekom 19,708
Telekom 19,708
Telekom 19,708
22
Vodafone 19,687
Vodafone 19,687
Telekom 20,671
Telekom 20,671
Vodafone 20,693
Vodafone 20,693
Telekom 19,708
Telekom 19,708
23
Telekom 20,671
Telekom 20,671
Telekom 20,671
Telekom 20,671
Vodafone 20,693
Vodafone 20,693
Telekom 19,708
Telekom 19,708
24
Telekom 20,671
Telekom 20,671
Telekom 20,671
Telekom 20,671
Vodafone 20,693
Vodafone 20,693
Vodafone 20,693
Vodafone 20,693
25
Telekom 20,671
Telekom 20,671
Telekom 20,671
Telekom 20,671
Telekom 21,727
Telekom 21,727
Vodafone 20,693
Vodafone 20,693
26
Vodafone 21,704
Vodafone 21,704
Telekom 20,671
Telekom 20,671
Telekom 21,727
Telekom 21,727
Vodafone 20,693
Vodafone 20,693
27
Vodafone 21,704
Vodafone 21,704
Telekom 20,671
Telekom 20,671
Telekom 21,727
Telekom 21,727
Telekom 21,727
Telekom 21,727
28
Vodafone 21,704
Vodafone 21,704
Vodafone 21,704
Vodafone 21,704
Telekom 21,727
Telekom 21,727
Telekom 21,727
Telekom 21,727
29
Vodafone 21,704
Vodafone 21,704
Telekom 22,789
Telekom 22,789
Telekom 21,727
Telekom 21,727
Telekom 21,727
Telekom 21,727
30
Vodafone 21,704
Vodafone 21,704
Telekom 22,789
Telekom 22,789
Vodafone 22,813
Vodafone 22,813
Telekom 21,727
Telekom 21,727
31
Telekom 22,789
Telekom 22,789
Telekom 22,789
Telekom 22,789
Vodafone 22,813
Vodafone 22,813
Telekom 21,727
Telekom 21,727
32
Telekom 22,789
Telekom 22,789
Telekom 22,789
Telekom 22,789
Vodafone 22,813
Vodafone 22,813
Vodafone 22,813
Vodafone 22,813
September 2015
Vodafone 180,153
The German mobile broadband spectrum auction: tales of mystery and retaliation
31
33
Telekom 22,789
Telekom 22,789
Telekom 22,789
Telekom 22,789
Telekom 23,953
Telekom 23,953
Vodafone 22,813
Vodafone 22,813
34
Vodafone 23,928
Vodafone 23,928
Telekom 22,789
Telekom 22,789
Telekom 23,953
Telekom 23,953
Vodafone 22,813
Vodafone 22,813
35
Vodafone 23,928
Vodafone 23,928
Telekom 22,789
Telekom 22,789
Telekom 23,953
Telekom 23,953
Telekom 23,953
Telekom 23,953
36
Vodafone 23,928
Vodafone 23,928
Vodafone 23,928
Vodafone 23,928
Telekom 23,953
Telekom 23,953
Telekom 23,953
Telekom 23,953
37
Vodafone 23,928
Vodafone 23,928
Telekom 25,124
Telekom 25,124
Telekom 23,953
Telekom 23,953
Telekom 23,953
Telekom 23,953
38
Vodafone 23,928
Vodafone 23,928
Telekom 25,124
Telekom 25,124
Vodafone 25,150
Vodafone 25,150
Telekom 23,953
Telekom 23,953
39
Telekom 25,124
Telekom 25,124
Telekom 25,124
Telekom 25,124
Vodafone 25,150
Vodafone 25,150
Telekom 23,953
Telekom 23,953
40
Telekom 25,124
Telekom 25,124
Telekom 25,124
Telekom 25,124
Vodafone 25,150
Vodafone 25,150
Vodafone 25,150
Vodafone 25,150
41
Telekom 25,124
Telekom 25,124
Telekom 25,124
Telekom 25,124
Telekom 26,407
Telekom 26,407
Vodafone 25,150
Vodafone 25,150
42
Vodafone 26,380
Vodafone 26,380
Telekom 25,124
Telekom 25,124
Telekom 26,407
Telekom 26,407
Vodafone 25,150
Vodafone 25,150
43
Vodafone 26,380
Vodafone 26,380
Telekom 25,124
Telekom 25,124
Telekom 26,407
Telekom 26,407
Telekom 26,407
Telekom 26,407
44
Vodafone 26,380
Vodafone 26,380
Vodafone 26,380
Vodafone 26,380
Telekom 26,407
Telekom 26,407
Telekom 26,407
Telekom 26,407
45
Vodafone 26,380
Vodafone 26,380
Telekom 27,699
Telekom 27,699
Telekom 26,407
Telekom 26,407
Telekom 26,407
Telekom 26,407
46
Vodafone 26,380
Vodafone 26,380
Telekom 27,699
Telekom 27,699
Vodafone 27,727
Vodafone 27,727
Telekom 26,407
Telekom 26,407
47
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 27,699
Vodafone 27,727
Vodafone 27,727
Telekom 26,407
Telekom 26,407
48
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 27,699
Vodafone 27,727
Vodafone 27,727
Vodafone 27,727
Vodafone 27,727
49
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Vodafone 27,727
Vodafone 27,727
No changes 55
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Vodafone 27,727
Vodafone 27,727
56
Vodafone 29,083
Vodafone 29,083
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Vodafone 27,727
Vodafone 27,727
57
Vodafone 29,083
Vodafone 29,083
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Vodafone 27,727
Vodafone 27,727
58
Vodafone 29,083
Vodafone 29,083
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Vodafone 27,727
Vodafone 27,727
59
Vodafone 29,083
Vodafone 29,083
Telekom 27,699
Telekom 27,699
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
60
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
32
61
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
62
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Vodafone 29,083
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
63
Vodafone 29,083
Vodafone 29,083
BNetzA
BNetzA
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
64
Vodafone 29,083
Vodafone 29,083
BNetzA
BNetzA
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
65
Vodafone 29,083
Vodafone 29,083
BNetzA
BNetzA
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
66
Vodafone 29,083
Vodafone 29,083
Vodafone 30,537
Vodafone 30,537
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
67
Vodafone 29,083
Vodafone 29,083
Vodafone 30,537
Vodafone 30,537
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
68
Vodafone 29,083
Vodafone 29,083
Vodafone 30,537
Vodafone 30,537
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
69
Vodafone 29,083
Vodafone 29,083
Vodafone 30,537
Vodafone 30,537
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
70
Vodafone 29,083
Vodafone 29,083
Vodafone 30,537
Vodafone 30,537
Telekom 29,113
Telekom 29,113
Telekom 29,113
Telekom 29,113
71
Telekom 30,537
Telekom 30,537
Vodafone 30,537
Vodafone 30,537
Vodafone 30,568
Vodafone 30,568
Telekom 29,113
Telekom 29,113
No changes 83
Telekom 30,537
Telekom 30,537
Vodafone 30,537
Vodafone 30,537
Vodafone 30,568
Vodafone 30,568
Telekom 29,113
Telekom 29,113
84
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 29,113
Telekom 29,113
85
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 29,113
Telekom 29,113
86
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
BNetzA
BNetzA
87
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
BNetzA
BNetzA
88
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
BNetzA
BNetzA
89
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 30,568
Telekom 30,568
90
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 30,568
Telekom 30,568
91
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 30,568
Telekom 30,568
92
Telekom 30,537
Telekom 30,537
Telekom 32,063
Telekom 32,063
Vodafone 30,568
Vodafone 30,568
Telekom 30,568
Telekom 30,568
93
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Telekom 30,568
Telekom 30,568
No changes
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
33
101
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Telekom 30,568
Telekom 30,568
102
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Vodafone 32,096
Vodafone 32,096
103
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Vodafone 32,096
Vodafone 32,096
104
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Vodafone 32,096
Vodafone 32,096
105
Vodafone 32,063
Vodafone 32,063
Telekom 32,063
Telekom 32,063
Telekom 32,096
Telekom 32,096
Vodafone 32,096
Vodafone 32,096
106
Telekom 33,666
Telekom 33,666
Vodafone 33,666
Vodafone 33,666
Telekom 32,096
Telekom 32,096
Vodafone 32,096
Vodafone 32,096
No changes
110
Telekom 33,666
Telekom 33,666
Vodafone 33,666
Vodafone 33,666
Telekom 32,096
Telekom 32,096
Telekom 33,700
Telekom 33,700
111
Telekom 33,666
Telekom 33,666
Vodafone 33,666
Vodafone 33,666
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
No changes 118
Telekom 33,666
Telekom 33,666
Vodafone 33,666
Vodafone 33,666
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
119
Telekom 33,666
Telekom 33,666
Telekom 35,349
Telekom 35,349
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
120
Telekom 33,666
Telekom 33,666
Telekom 35,349
Telekom 35,349
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
121
Telekom 33,666
Telekom 33,666
Telekom 35,349
Telekom 35,349
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
122
Vodafone 35,349
Vodafone 35,349
Telekom 35,349
Telekom 35,349
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
No changes
126
Vodafone 35,349
Vodafone 35,349
Telekom 35,349
Telekom 35,349
Vodafone 33,700
Vodafone 33,700
Telekom 33,700
Telekom 33,700
127
Vodafone 35,349
Vodafone 35,349
Telekom 35,349
Telekom 35,349
Telekom 35,385
Telekom 35,385
Vodafone 35,385
Vodafone 35,385
No changes 135
Vodafone 35,349
Vodafone 35,349
Telekom 35,349
Telekom 35,349
Telekom 35,385
Telekom 35,385
Vodafone 35,385
Vodafone 35,385
136
Telekom 37,116
Telekom 37,116
Telekom 35,349
Telekom 35,349
Telekom 35,385
Telekom 35,385
Vodafone 35,385
Vodafone 35,385
137
Telekom 37,116
Telekom 37,116
Vodafone 37,116
Vodafone 37,116
Telekom 35,385
Telekom 35,385
Vodafone 35,385
Vodafone 35,385
No changes
September 2015
The German mobile broadband spectrum auction: tales of mystery and retaliation
34
144
Telekom 37,116
Telekom 37,116
Vodafone 37,116
Vodafone 37,116
Telekom 35,385
Telekom 35,385
Vodafone 35,385
Vodafone 35,385
145
Telekom 37,116
Telekom 37,116
Vodafone 37,116
Vodafone 37,116
Vodafone 37,154
Vodafone 37,154
Telekom 37,154
Telekom 37,154
No changes 154
Telekom 37,116
Telekom 37,116
Vodafone 37,116
Vodafone 37,116
Vodafone 37,154
Vodafone 37,154
Telekom 37,154
Telekom 37,154
155
Telekom 37,116
Telekom 37,116
Telekom 38,971
Telekom 38,971
Vodafone 37,154
Vodafone 37,154
Telekom 37,154
Telekom 37,154
156
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Vodafone 37,154
Vodafone 37,154
Telekom 37,154
Telekom 37,154
No changes 166
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Vodafone 37,154
Vodafone 37,154
Telekom 37,154
Telekom 37,154
167
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Telekom 39,011
Telekom 39,011
Telekom 37,154
Telekom 37,154
168
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Telekom 39,011
Telekom 39,011
Vodafone 39,011
Vodafone 39,011
No changes 174
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Telekom 39,011
Telekom 39,011
Vodafone 39,011
Vodafone 39,011
175
Vodafone 38,971
Vodafone 38,971
Telekom 38,971
Telekom 38,971
Telekom 39,011
Telekom 39,011
Telekom 40,961
Telekom 40,961
176
Vodafone 38,971
Vodafone 38,971
Vodafone 40,919
Vodafone 40,919
Telekom 39,011
Telekom 39,011
Telekom 40,961
Telekom 40,961
177
Vodafone 40,939 (20)
Vodafone 40,939 (20)
Vodafone 40,919
Telekom 42,964
Telekom 39,011
Telekom 39,011
Telekom 40,961
Telekom 40,961
178
Vodafone 40,939
Vodafone 40,939
Vodafone 40,919
Telekom 42,964
Vodafone 42,961 (2,000)
Telekom 39,011
Telekom 40,961
Telekom 40,961
Vodafone 42,961 (2,000)
Telekom 39,011
Telekom 40,961
Telekom 40,961
No changes 181
Vodafone 40,939
September 2015
Vodafone 40,939
Vodafone 40,919
Telekom 42,964
The German mobile broadband spectrum auction: tales of mystery and retaliation
35
DotEcon Discussion Papers DP No. 02/01: Roger Salsas and Christian Koboldt, ‘Roaming free? Roaming network selection and inter-operator tariffs’, August 2002. DP No. 02/02: Réka Horváth and Dan Maldoom, ‘Fixed-mobile substitution: A simultaneous equation model with qualitative and limited dependent variables’, August 2002. DP No. 02/03: Dan Maldoom, ‘Caller-called party interaction: Implications for call termination’, September 2002. DP No. 03/01: Christian Koboldt, Dan Maldoom and Richard Marsden, ‘The first combinatorial spectrum auction – lessons from the Nigerian auction of fixed wireless access licences’, May 2003. DP No. 07/01: Dan Maldoom, ‘Winner determination and second pricing algorithms for combinatorial clock auctions’, December 2007. DP No. 10/01: Richard Marsden, Eimear Sexton and Arisa Siong, ‘Fixed or flexible? A survey of 2.6GHz spectrum auctions’, June 2010. DP No. 11/01: Christian Koboldt, Dan Maldoom and Roger Salsas, ‘How strong are merchant constraints on interchange fees?’, April 2011. DP No. 15/01: Christian Koboldt and Hans-Martin Ihle, ‘The German mobile broadband spectrum auction: tales of mystery and retaliation’, September 2015. Further DotEcon publications, including the DotEcon Perspectives series and publicly available reports, presentations and submissions can be downloaded at www.dotecon.com.
About DotEcon DotEcon is an economic consultancy advising private and public sector clients in: • Competition cases, regulatory proceedings and commercial litigation • Public policy design and regulatory impact assessments • Design and implementation of auctions and trading mechanisms • Bidder support for high-value transactions • Econometric analysis and data mining • Business strategy and decision support
Founded in 1999, the company focuses on providing high-value advice to governments and leading companies using rigorous microeconomic techniques. DotEcon works for clients across the world, and is involved with many high-profile policy debates and business decisions. DotEcon has a particular focus on network industries such as telecommunications, transport, energy and payment systems. DotEcon is the recipient of a Queen’s Award for Innovation 2011.
September 2015