The importance of the size of the digital dividend when digital dividend spectrum is auctioned

This paper simulates a 'service-neutral' digital dividend auction, considering three different amounts of spectrum (48 MHz, 80 MHz and 120 MHz). For this, an efficient simulator for combinatorial first-price sealed bid auctions has been implemented. The results show rather coherently that the price per lot is higher the smaller the amount of spectrum auctioned and that companies from the mobile environment will most probably emerge as main winners from these digital dividend auctions. These research findings are particularly important as the sharing out of the digital dividend represents a unique opportunity for putting a precious amount of radio electric spectrum at the disposal of other services, particularly for the development of new generations of mobile communications.