30 Sept 2011 Cases

Greek Spectrum License

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The Greek telecommunications regulator EETT was considering conditions for renewing GSM mobile phone licenses and Compass Lexecon’s client Wind Hellas was concerned that its own GSM licenses would be sold off in an auction in which it would be outbid by its larger competitors, resulting in a position of unsustainably high network costs. Working together with management consulting firms Altman Vilandrie and Solon Mangement Consulting, Compass Lexecon economists Philip Kalmus and Betram Neurohr showed that if an open auction were conducted, larger competitors would have anti-competitive incentives to outbid Wind Hellas, creating and benefitting from a less competitive market environment ex-post. EETT decided to reserve 75% of the relevant Wind Hellas spectrum. In addition to Philip Kalmus and Bertram Neurohr, the Compass Lexecon team included Darin Lee of the Boston office and Oscar Volij of Ben Gurion University.

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