The National Communications Commission (NCC) has commenced the first wave of auction of available spectrum for mobile broadband business (5G) licenses. After the first day of ten rounds of bidding, the total sum of the tentative winning bids has reached TWD 26,774 million.
The auction took place from 9 am to 4 pm and continues tomorrow. A total of five eligible bidders - Chunghwa Telecom, Taiwan Mobile, Taiwan Star Cellular, Asia Pacific Telecom, and Far Eastone Telecommunications - have been placing bids for blocks (lots) of spectrum.
A total of 2790MHz of bandwidth has become available for bidding including 270MHz from the 3.5GHz band, 2500MHz from the 28GHz band, as well as a further 20MHz from the 1800MHz band, which was remaining from the previous 4G auction. The bandwidth in the 3.5GHz band has been divided into bidding blocks of 10MHz each, whereas bidding blocks of 100MHz have been made available in the 28GHz band, as well as the one 20MHz block from the 1800MHz band. Bidders can bid for a number of blocks in each band.
The 5G auction will be conducted through a two-stage bidding process. During the first stage, bidders determine the number of blocks they wish to obtain through a multi-round auction with quantity-based bidding. During the second stage, which is a location-based auction, they further engage in bidding for specific assignments in accordance with the number of the blocks that they have won, enabling bidders to secure contiguous bandwidths and maximize spectrum use.
In order to prevent monopolization and to ensure fair competition, according to Regulations for Administration of Mobile Broadband Business, each enterprise may be awarded a maximum of 100MHz bandwidth in the 3.5GHz band, and a maximum of 800MHz bandwidth in the 28GHz band.
When the sum of the requested bandwidths is greater than or equal to the auctioned bandwidth during the first stage of the auction, the round price of the round shall be 1.03 times the round price of the previous round.
The first stage of the auction concludes when all bidders that are eligible to submit bids for bandwidths decline to do so for two consecutive rounds. The second stage of the auction takes place at least seven days after the first stage has concluded.
After the ten rounds of auctioning today, all five enterprises remain eligible bidders. Please refer to charts and statistics below for the tentative results. For further information, please refer to the website (https://mbb5g.ncc.gov.tw).
Chart 1：1800MHz, 3500MHz and 28000MHz Bands Tentative Winning Price vs. Reserve Price for the First Day
Chart 2: Trend of Tentative Winning Price & Eligible Bidders
Table 1: Tentative Winning Price vs. Reserve Prices for the First Day