Other administrations have encountered some problems with spectrum auctions. How will the department address these problems in Canada?

While most auctions that were conducted in other countries have been considered a success, a few problems have nonetheless been encountered. Based on expert advice and continued analysis of auctioning around the world, Industry Canada is confident that it has found effective solutions to these problems: • bid withdrawal problems can be alleviated by implementing a withdrawal penalty; • defaults can be avoided by requiring bids to be paid in lump sum amounts; and • bid signalling and erroneous bid submission problems have been addressed through simple auction design modifications. More.

Although most, if not all, administrations that have run spectrum auctions have considered them to be successful, a few difficulties have been encountered. These include bid withdrawals and defaults, possible bid signalling, and submission of erroneous bids. Based on the advice we have received from some of the world's leading auction experts and our continued analysis of auctioning around the world, we are very confident that we have effective solutions to these problems: bid withdrawal problems can be alleviated by implementing withdrawal penalties, defaults can be avoided by requiring bids to be paid in lump sum amounts, and bid signalling and erroneous bid submissions can be addressed with simple auction design modifications.

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