Spectrum allocation auction terms | ACMA

Spectrum allocation auction terms

UPDATE – On 19 March 2013, the Minister for Broadband, Communications and the Digital Economy gave a direction, titled the Australian Communications and Media Authority (Spectrum Licence Allocation–Combinatorial Clock Auction–Eligibility Deadline and Payment Terms) Direction 2013 (the Direction),requiring that the ACMA: 

  • not notify a winning bidder under subsection 6.8(1) of the Radiocommunications (Spectrum Licence Allocation-Combinatorial Clock Auction Determination) 2012 of the balance of the bidder’s winning price before:
  • if any of the spectrum licences to be issued for the parts of the spectrum allocated to the bidder has a commencement date of 1 October 2014—19 August 2014; or;
  • otherwise—1 October 2014.
  • extend the date of the eligibility deadline for the auction from 21 March 2013 to 28 March 2013.

As a result of the Direction, the ACMA has revised the eligibility deadline from 11.59 pm on 21 March 2013 to 11.59 pm on 28 March 2013. It has also revised the auction commencement date from 16 April 2013 to 23 April 2013.

In accordance with section 4.4(2) of Part 4 of the Radiocommunications (Spectrum Licence Allocation—Combinatorial Clock Auction) Determination 2012, the ACMA has published a notice giving details of changes on its website.

The post below has been updated on 20 March 2013 to incorporate the changes outlined in the notice. The changes made to this post are listed here for ease of reference.


 In accordance with section 4.6 of the Radiocommunications (Spectrum Licence Allocation—Combinatorial Clock Auction) Determination 2012, the ACMA has set the:

  • Lot rating for the lots of each product

Lot ratings provide the basis for the eligibility payment (auction deposit), and activity rules during the clock rounds of the auction. Each lot is ascribed a lot rating, expressed in eligibility points.

  •  Dollar value of each initial eligibility point for the auction

The value of each initial eligibility point is used to determine a bidder’s eligibility payment. This amount is calculated by multiplying the number of points an applicant nominates as its initial eligibility by the dollar value of each point.

  • Price for the lots of each product for the first clock round (the reserve price)

The initial price for the lots of each product signifies the price of the lots in the first clock round.

The ACMA has set the reserve prices for a single lot of each product in the 700 MHz and 2.5 GHz bands.

To set the reserve price for a single lot of each product, the ACMA has used a price per MHz per head of population calculation ($/MHz/pop). This relies on three variables to establish a total price per lot:

  • the set dollar figure per MHz per head of population
  • the size (in MHz) of the lot
  • the population figure for the geographic area covered by the lot.

Dollar figure

The Minister for Broadband, Communications and the Digital Economy has directed the ACMA to set reserve prices in the 700 MHz band at $1.36/MHz/pop.

In the 2.5 GHz band, the ACMA has set reserve prices at $0.03/MHz/pop.

 Size (in MHz) of each lot

The size (in MHz) of lots in each product is 10 MHz. This is set out in the relevant marketing plans.

The minister’s direction for the 700 MHz band requires the ACMA to use the following measure of population:

… the projected population of a Geographic Area, having regard to the population data made available by the Australian Bureau of Statistics, for the approximate time of the auction of the relevant spectrum in accordance with the Allocation Procedures.

Population estimate

To arrive at a population estimate, the ACMA adopted the following method:

  • As a starting point, the ACMA used the most up-to-date ABS population estimate (30 June 2012).
  • The estimate was adjusted against the Australia Spectrum Map Grid.
  • The estimate was extrapolated to the end of March 2013, as the nearest quarter to the auction, using the population growth forecasts in the Treasury’s budget documents.

The ACMA has also set the lot ratings and dollar value of each eligibility point for the auction. These are used to calculate prospective bidders’ deposits (eligibility payment) for the auction.

Click here for the reserve prices, lot ratings and dollar value of each eligibility point.

In addition, the ACMA has published the eligibility nomination form, which auction applicants must use to nominate their initial eligibility points for the auction.  Instructions on how to calculate an applicant’s initial eligibility points are found in the form.

Auction applicants have until 28 March 2013 to:

  • submit a completed eligibility nomination form
  • make an eligibility payment or give the ACMA a deed of financial security.

Detailed information on how to participate in the auction can be found in the Applicant information package.

Last updated: 20 March 2013

 

Last updated: 12 May 2017