SlideshowGermany raids telcos for €6.5B in epic 5G auction

Price per MHz Pop ($) for 3.4-3.8GHz Spectrum
Source: Regulators, operators, Light Reading.
Source: Regulators, operators, Light Reading.

DataRoad 6/13/2019 | 8:34:40 PM
Wireless Spectrum. EFFICIENCY It ceases to amaze me the total lack of comprehension of what buying up spectrum really means. Just because you have spectrum does not mean a good outcome for the end user. Most carriers do not realise they already have enough spectrum what they do not understand is there is technology proven and available that can put up to six times data into the spectrum they already have . It is just a minor network up grave to the networks they already have. PROVEN! Most importantly the outlay return is almost immediate.
James_B_Crawshaw 6/14/2019 | 3:56:24 AM
Re: Wireless Spectrum. EFFICIENCY Pray tell, what is this magic upgrade technology o DataRoad?
James_B_Crawshaw 6/14/2019 | 4:09:06 AM
Spectrum Bellyaching I've often bought things on Ebay and in the heat of the moment paid far more than I should for some second hand tat and ended up regretting it. The auction winner's remorse / curse. But these are sunk costs and should (in theory) have no impact on my future investment decisions. The GSMA and other lobby groups pay consultants to do studies that try to show in practice operators do take sunk costs into account when deciding how much to invest or what prices to set for their services. Here is an example:


I would point you to the charts on page 17. Let's assume that their wireless score metric is valid even though it puts Australia about 17 times Austria. Is there a correlation between this wireless score and cost of spectrum? Not that I can see. They have drawn a curve with a pathetically low R-squared of 0.164. That is meaningless. I could draw one that went from bottom left to top right that implied wireless score improves as the cost of spectrum goes up. 

Clearly there are lots of factors that affect the quality and cost of mobile service that the public gets. I am not convinced that spectrum costs are a major factor. 
Sign In