RD203 - ETNO Reflection Document commenting on Auctions and Beauty Contests

ETNO provides operators views to be inserted into the draft ECC Report on Auctions and Beauty Contest.

Concerning authorisations and rights to use radio spectrum, ETNO calls for harmonised frequency assignment procedures, no exclusion of stakeholders from assignments if investments capacity and competence are proven and establishment of refarming funds to compensate premature withdrawal. On the question whether auctions or beauty contests are better suited, ETNO supports the merits of beauty contests in terms of higher cost proportionality and greater flexibility for later modifications if appropriate. On the other hand, it is acknowledged that auctions may provide efficient results, provided that the auction principles have been well considered and designed to avoid negative side effects and to come to an optimal solution for the market. Another alternative could be spectrum pooling. With regard to spectrum costs and charges, ETNO is of the opinion that charges paid for radio spectrum exceeding the costs for administrative spectrum management - either caused by auctions or spectrum fees - should be avoided as far as possible and in any case should flow back into the telecommunications sector for the benefit of the information society.