June 18th, 2008Spectrum Auction: Round 79 Bidders hitting their limits
Bidders in Canada’s AWS auction are getting to down to the end of their bankrolls. Although each bidders holdings are zig-zagging every round, the one consistent pattern is that most of the bidders are capping out at a maximum amount they are willing to have on the table at one time. If we go back and look at each bidders maximum over the last several rounds and add these totals up, we have a good as guess as any as to how far the auction could go – before everyone hits their spending limits.
Here’s what the data looks like:
Highest sum of winning bids in recent rounds Rogers 833 Telus 777 Bell 652 Quebecor 590 Globalive 562 data AV 238 Shaw 172 Tirabassi 49 MTS 48 Bragg 54 Sasktel 31 Novus 17 Blue Canada 8 Celuworld 1 Canquest 0 _____ Total 4,033 Current Auction Proceeds 3,822
At the present rate of auction pricing only increasing 6 Million a round it could take another 30 rounds for the auction to exhaust everyone’s budget. As the action gets closer to each bidder’s ceiling we are seeing more did withdrawals and waivers being used. The last few rounds have seen Globalive and Data AV for example withdrawing past winning bids in order to relocate funds to other places.
