Thinking about bidding for one of Ofcom’s upcoming spectrum auctions be warned - it is more complex than it looks.

That was the general thrust of a seminar held by city law firm Olswang in London this week (12.9.06). Whilst the cynics among us might well argue that the event was just a clever ploy to sell services, if Ofcom’s auction process is as hazardous as it sounds then expensive legal bills should be the least of your worries.

The key criticism seems to be that Ofcom has not clearly differentiated between collusion and confidentiality, the two primary evils it hopes to avoid in the auction process. The UK regulator’s main tool for preventing the two “Cs” is the so-called Bidder Group. With respect to confidentiality applicants must provide Ofcom with a mountain of information on any relationship that may have a ‘material impact on the outcome of the bid’ - these people must be included in the bidder group with two exceptions, financiers and advisors (such as law firms). Sounds straightforward but dig a little deeper and it is a potential ‘dog’s breakfast’. Customers, suppliers, indeed anybody who might have knowledge of your business plan could be implicated.

Then there is collusion, even trickier since collusive behaviour is unlikely to be explicit, it’s difficult to prevent, there is no formal definition and no actual cases.

So when Ofcom suggests, as it did in the DECT/Guardband auction, that stakeholders get together to discuss technical aspects of sharing, did it consider the potential for collusion? Apparently there were a few worried faces at the final briefing ahead of the auction when Ofcom read out the rules. The rules are there to be enforced says Olswang.

Clarity please Ofcom?

Read the full story in PolicyTracker, the spectrum management newsletter.