Another example of UK "money is in a limitless supply" mantra-mindwarp-thingie?
Rather than auction with bids at cost how about, just as an example:
O*com: Yeah, tell us what you want, get in a huddle and sort it out amicably though. No fighting! Put it in writing then give us time to sort it out with central government.
T*lco: But what about the costs? How much do you want upfront and how do we pay?
O*com: You will need to pay me all the costs upfront in cash to my bank account. Only kidding folks!
This time there will not be an auction with costs paid upfront. We want to use a different model because we know that Telcos do not generate money from fresh air but get it from their users and customers.
We overcharge you, you overcharge your clients might be the usual way but we are a public body and charged to look after public needs so this time you will pay us a commission