08 October, New Delhi
mjunction services limited, who have been selected by DoT for conduct of e-auction of telecom spectrum, have successfully conducted the auctions for the second time in a row.
The auction which continued for five days, from October first to sixth of
October, has brought an overall 3.35 percent appreciation in auction value over the reserve price for the Spectrum sold.
mjunction used Simultaneous Multiple Round Auction (SMRA) methodology, an internationally well accepted methodology, to conduct the e-auction.
Under this system all the offerings were opened simultaneously, and were subsequently closed together, to enable the operators to switch across the offerings in real time. Also, in such an auction open over multiple rounds it generates an increase in price with optimum revenue realization in a fair manner.
The Auction Activity Requirement ensures sustained bidding activity, limiting any ambush bidding tendency. This rolls out a level playing field based on initial Earnest Money Deposits.
“We paid close attention to improving the overall experience of the operators, with easy bidding screen, dashboards and call centre assistance. A custom ‘watchlist’ was designed to help operators keep a close tab on LSAs of strategic importance to them,” said mjunction CEO, Vinaya Varma.
mjunction has leveraged its implementation strengths to extend an internationally accepted auction methodology for Spectrum Auctions, to an ever increasing number of simultaneous offerings, which increases the complexity by several orders of magnitude than before.
By successfully managing this complexity, first in 69 offerings across four bands and 22 circles in 2015 and then in 126 offerings across seven bands and 22 circles in 2016, mjunction has given evidence of its strong hold in conducting such high value auctions.
At the end of each round, if demand exceeds available quantity, the price is increased by a fixed percentage/quantum for the next round. The auction ends when there is no excess demand and no further price increments can be applied.
This includes spot and forward auctions for commodities such as coal and steel.
Such auction processes are applied in various scenarios to generate healthy competition within same industry segments, selling big volume of inventories across verticals.
The efforts put in by mjunction team for Spectrum Auctions came to fruition when bidders responded with warm mails at the close of a five day period of system orientation.
This auction system was tested and audited by STQC on functional grounds, penetration, vulnerability assessment, network security and application security over and above data security with IT Act and CVC compliance required for running the auction.