Setting the price for 700 MHz auctions a tricky balancing act - LYA

MONTREAL - With the US 700 MHz auction raising about $19.1 billion in 2008, nearly double the reserve price of $10 billion, other governments preparing for their own auctions are now going about the tricky task of setting their own reserve prices. In Australia, Communications Minister Stephen Conroy surprised many when he recently set a reserve price of $1.36 per megahertz per population (about AU $3 billion) for lots of 700 MHz spectrum to be auctioned next year. The price is virtually identical to the US 700 MHz auction reserve from 2008. Such high pricing may discourage bidders cautions Johanne...