Strategic and economic advisory services for a mobile-network operator during Israel’s 5G spectrum auction
- Business Dilemma:
Israel’s Ministry of Communications conducted a 5G spectrum auction, implementing a Combinatorial Clock Auction format. Mobile-network operators faced critical decisions regarding spectrum valuation, investment planning, and bidding-strategy development. The complex auction structure required careful analysis to determine an optimal bidding strategy to win the desired amount of spectrum at a minimal price.
- Process:
TASC’s comprehensive approach began with collaborating with the client’s engineering team to assess deployment plans, followed by extensive research on 5G use cases. We then developed a 10-year business plan to assess the auction’s value and investment viability. Our analysis included ranking potential spectrum bundles based on network quality and economic impact, while also evaluating competitors’ preferences and assumed auction strategies. This culminated in defining a detailed bidding strategy with tactical price points and robust risk-management measures.
- Strategic Solution & Impact:
The developed bidding strategy proved highly effective, resulting in the client securing its targeted spectrum allocation while achieving the most favorable pricing position among auction participants. This outcome positioned the operator optimally for its planned 5G network deployment.
