The German mobile broadband spectrum auction - DotEcon

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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

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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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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

September 2015

C BNetzA

The German mobile broadband spectrum auction: tales of mystery and retaliation

20

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