Valuing mobile spectrum in Mexico

Plum was commissioned by the Inter-American Development Bank to provide advice to the Mexican telecommunications regulator, the IFT, on the appropriate way of valuing spectrum ahead of a number of auctions.  The IFT was set to significantly expand the amount of spectrum available to operators, and wanted to understand the appropriate level for reserve prices and to set expectations for auction outcomes.

A series of working papers were produced which covered the structure of the market, the appropriate traffic forecast to be used for spectrum valuation, valuation methodologies used internationally and recommendations for a valuation framework for Mexico. In addition an avoided cost model was developed for the IFT to assist in spectrum valuation exercises in the future. The study then implemented the valuation framework for a number of bands due to be auctioned in the near future.