Auction summary – 2 GHz Third generation mobiles – 2001 | ACMA

Auction summary – 2 GHz Third generation mobiles – 2001

Overview

Status

Complete

Auction date

15 - 22 March 2001

Amount raised

$1.17 billion

Licence end date

11 October 2017

The 2 GHz auction closed at round 19 on 22 March 2001. Of the 58 lots on offer in the auction, 48 were sold, culminating in a total sale price of $1,168,993,500. No bidders attracted withdrawal penalties.

On this page

  • Overview
  • Spectrum Details
  • Auction Details
  • Bidders
  • Background

On other pages

Related documents

Media releases

Spectrum details

Band details

  • 1900-1920 MHz (20 MHz unpaired in all State and Territory capital cities)
  • 1920-1980/2110-2170 MHz (2 x 60 MHz paired in all State and Territory capital cities except Canberra)
  • 1935-1980/2125-2170 MHz (2 x 45 MHz paired in Canberra)
  • 1960-1980/2150-2170 MHz (2 x 20 MHz paired in regional areas)

Licence types

Spectrum licences

Previous use

Fixed links

Licence period

15 years

Auction details

Type of allocation

Price based allocation of spectrum licences under s60 following declaration of encumbered spectrum for reallocation by spectrum licensing under s153B(1) of the Radiocommunications Act 1992.

Method of sale

Simultaneous multiple round (SMR) auction over 19 rounds

Competition limits

In the paired spectrum no bidder was permitted to acquire more than 2 x 15 MHz in State and Territory capital cities, and 2 x 10 MHz in designated regional areas. No bidder was permitted to acquire more than 5 MHz of the 20 MHz of unpaired spectrum (1900—1920 MHz) in State and Territory capital cities.

Legal instruments

Bidders

Bidders

Bidder Number

Initial Eligibility*

Winning Bid Amounts

AAPT (ACT) Pty Ltd

2943

2750

No winning bids

3G Investments (Australia) Pty Ltd

2942

2825

159,000,000

CKW Wireless Pty Ltd

2944

75

9,450,000

Hutchison Telecommunications (Australia) Ltd

2945

2500

196,100,000

Optus Mobile Pty Ltd

2946

2825

248,870,000

Telstra 3G Spectrum Holdings Pty Ltd

2947

2825

302,023,500

Vodafone Pacific Limited

2948

2825

253,550,000

  TOTAL

   

1,168,993,500

* Maximum eligibility permitted in compliance with the competition limits was 2825

Background

Following agreement in 2000 on global specifications for third generation (3G) wireless communications systems, also termed International Mobile Telecommunications-2000 (IMT-2000), many countries commenced action to make spectrum available for these systems from internationally recommended bands. In Australia, the ACA invited applications for the auction of spectrum licences in the 2 GHz band on 6 December 2000.

The spectrum licences in the 2 GHz band were allocated by simultaneous ascending auction, in which all lots were offered for bidding at the same time through electronic bidding over the internet. While the spectrum licences allowed considerable flexibility on the technology employed and the purpose for which it was used, the 2 GHz band was expected to become the principal band for the delivery of 3G services to metropolitan Australia and some regional areas.

The 2 GHz band spectrum auctioned covered 95 per cent of the Australian population. In all state and territory capital cities except Canberra, 60 MHz of paired spectrum and 20 MHz of unpaired spectrum were auctioned. In Canberra, 45 MHz of paired spectrum and 20 MHz of unpaired spectrum were available. In regional Australia, 20 MHz of paired spectrum was auctioned. The unpaired spectrum (1900-1920 MHz) was made available in regional areas via apparatus licences in 2006.

Competition limits set for the auction meant that no bidder could acquire more than 25 per cent of the available spectrum in metropolitan areas except Canberra, where 33% was permitted; and no more than 50 per cent in regional Australia.

The spectrum was configured for auction in 58 lots in metropolitan and regional areas with two of the lots offering licences for spectrum nationally. Other auction lots were for licences that offer spectrum in the aggregated capital cities, and further lots were for individual cities or regions. This structure allowed a bidder to bid for a ‘national’ allocation, an ‘all-cities’ allocation or for spectrum in individual cities or areas with a single bid.

Seven bidders took part in the auction that commenced on 15 March 2001 and closed at round 19 on 22 March 2001. Six of the bidders were successful in acquiring spectrum. Of the 58 lots on offer in the auction, 48 were sold, culminating in a total sale price of $1,168,993,500. No bidders attracted withdrawal penalties.

Last updated: 16 September 2016