Podcast: Should regulators use cashless auctions?

Since the first spectrum auction took place in 1996 in New Zealand, there have been many changes to the auction format. Yet one fundamental idea hasn’t changed: the bidder who offers up the most cash wins.

In the latest episode of the PolicyTracker Spectrum podcast, we speak to Yasmine Frizlen about cashless auctions, a new format that challenges this key assumption. Yasmine is an economic analyst in the spectrum department at NERA, a consultancy.

Cashless auctions are awards where cash is not the primary focus. There is more emphasis on issues like investment commitments and promises of coverage rollouts.

NERA has a long history with spectrum auctions—it was even involved in that 1996 auction in New Zealand. Frizlen explains what cashless auctions are, and why the consultancy recommends a two-part cashless auction (recently used in Austria).

She also touches on the potential downsides of this new auction type, and its impact so far in the countries that have used it.

Listen to the new podcast below. You can also find it on all major podcast platforms.