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Advisorship in spectrum awarding

The Foundation has served as the advisor for many of the spectrum awarding procedures issued by the Italian Ministry of Economic Development.

In particular, the Foundation assists the Ministry in developing and implementing the awarding process, based on the general rules issued by the National Regulation Authority (NRA, i.e. AGCOM).

The most common awarding procedures adopted so far in Italy are:

  1. simultaneous multiple-round auctions (SMRA). This kind of auction has been used for the release of Rights of Use (RoU) for spectrum for the mobile service. It has been applied to multiple lots, also in multi-band auctions.

  2. beauty contests. This procedure is most commonly adopted for what relates to the TV broadcasting services, including RoU for spectrum and Logical Channel Numbering (LCN) assignments.

The Foundation is involved in the various phases of the awarding procedures as outlined here below for the illustrative case of the auctions for spectrum RoU.

Preparatory activities:

  1. Technical aspects (e.g. technical conditions for spectrum usage, definition of coverage obligations)

  2. Economic aspects (e.g. detailed calculation of the reserve price, possibly based on the guidelines from the NRA)

  3. Procedures (e.g. procedures for bidding, ranking and identification of the winners)

Drafting of the call for tenders and related tender specifications. This may include a preliminary public consultation and/or a Q&A phase after the tender issuing.

Running of the auction, including:

  1. operational procedures

  2. possible software tools

  3. training of the participants

  4. logistic organisation of the spaces for bidding

Activities further to the auction, such as:

  1. definition of methods and procedures to verify the achievement of possible obligations
    (e.g. coverage obligations)

  2. verification of obligations (e.g. assessment of the fulfilment of coverage obligations)

  3. compliance with specific commitments (e.g. discount of fees against the adoption of energy-efficient solutions)