On 19 September, NERA Senior Managing Director Richard Marsden spoke at the Spectrum Auctions and Market Structure Conference hosted by Toulouse School of Economics in Zurich, Switzerland. The conference provided insights into empirical research, industry perspectives, and regulatory perspectives to help advance our understanding of spectrum auctions and market structure and provide practical insights for policy.

Mr. Marsden presented on industry perspectives in a session titled “The Role of Auction Design in Spectrum Renewal.” He highlighted how common auction formats, such as clock auctions with spectrum caps, may fail to deliver efficient or pro-competitive outcomes in markets with pronounced bidder asymmetries. Drawing on his recent book Round-by-Round and a Swiss case study, he explained why regulators should be less concerned with revenue effects of demand reduction and more focused on how asymmetries can disadvantage smaller operators. He noted that Switzerland, facing a major relicensing event in 2028, already has the most asymmetric spectrum holdings in Europe.

Marsden argued that traditional tools like spectrum caps are often insufficient and that partial renewals or two-stage auction designs could help level the playing field. These approaches, already seen in several European countries, provide a practical way for regulators to mitigate risk and protect downstream competition, but they are novel and not widely tested.