Notice advertising the auction of residual 700 MHz band spectrum | ACMA

Notice advertising the auction of residual 700 MHz band spectrum

Notice under subsection 26(1) of the Radiocommunications (Spectrum Licence Allocation – 700 MHz Band) Determination 2016

AUCTION OF RESIDUAL 700 MHz BAND SPECTRUM

The Australian Communications and Media Authority (the ACMA) gives notice under subsection 26(1) of the Radiocommunications (Spectrum Licence Allocation – 700 MHz Band) Determination 2016 (Allocation Determination) for the residual 700 MHz band spectrum auction.

Spectrum to be auctioned

The ACMA will allocate spectrum licences in the frequency ranges 733 MHz– 748 MHz and 788 MHz–803 MHz (residual 700 MHz band spectrum), in the geographic area specified in the Radiocommunications (Spectrum Re-allocation) Declaration No. 1 of 2011 (Re-allocation Declaration), through an auction.

There are two lots on offer for the residual 700 MHz band spectrum auction, as listed in Part 2 of Schedule 2 to the Re-allocation Declaration. The lots are:

  1. The 10 MHz lot, which represents the following frequency ranges:
    1. 738 MHz to 748 MHz; and
    2. 793 MHz to 803 MHz;
  2. The 5 MHz lot, which represents the following frequency ranges:
    1. 733 MHz to 738 MHz; and
    2. 788 MHz to 793 MHz.

Both lots are available in a geographic area known as the National Region, the area bounded by the coordinates specified in Table A of the Schedule to the Re-allocation Declaration, excluding the Mid West Radio Quiet Zone (as defined in the Re-allocation Declaration).

How the auction will be conducted

The auction will be conducted in accordance with the procedures specified in the Allocation Determination. The auction will be conducted online using a Simple Clock Auction (SCA) format. The auction will commence with rounds for bidding on the 10 MHz lot. Once a winning bidder has been identified for the 10 MHz lot (or there are no bids on the 10 MHz lot in the first round), the auction will move to rounds for bidding on the 5 MHz lot. Once a winning bidder has been identified for the 5 MHz lot (or there are no bids on the 5 MHz lot in the first round for bidding on that lot), the auction will conclude.

Section 41 of the Allocation Determination states that the ACMA may allocate a spectrum licence or licences for lots at a pre-determined price without having to conduct an auction.

How to take part in the auction

The ACMA invites interested parties to apply to take part in the auction.

To help prospective bidders prepare for the auction, the ACMA has published the Applicant Information Package (AIP). The AIP includes the auction guide, legislative instruments, forms, details about fees and payments, key dates and information on how to lodge auction documents.

The AIP can be obtained from the ACMA’s website.

The auction guide

The auction guide provides a plain English explanation of the lots on offer and how interested parties can take part in the auction. An accessible Word version of the auction guide is also available.

Legislative instruments

The following are the legislative instruments for the residual 700 MHz band spectrum auction:

Allocation instruments

Technical instruments

Ministerial direction

Re-allocation declaration

Fees and payments

Application fee

The application fee for the auction is $10,000. In accordance with section 25 of the Allocation Determination, the application fee is non-refundable in any circumstances.

Starting prices

The starting price for each lot has been set by the ACMA in accordance with the Radiocommunications (Spectrum Licence Allocation-Residual 700 MHz spectrum) Direction 2016 (ministerial direction). The starting prices are:

  • for the 10 MHz lot: AUD $571,814,000;
  • for the 5 MHz lot: AUD $285,907,000.

Key dates

The key dates for parties interested in applying to participate in the auction are as follows:

Event

Date

1

The ACMA advertises auction, publishes the applicant information package and applications open.

16 January 2016

2

Application deadline

By this date and time, any person wishing to be an applicant will need to:

  • submit a completed application form
  • submit a completed deed of acknowledgement form
  • submit a completed deed of confidentiality form
  • pay the application fee to the ACMA on behalf of the Commonwealth.

11.59 pm on Monday 13 February 2017

3

The ACMA gives each applicant details about the identity of all other applicants and their associates, and all previous successful bidders and asks each applicant to make a statutory declaration about whether they are affiliated with another applicant or a previous successful bidder.

After the application deadline

4

Deadline for statutory declarations requested under event #3.

At least five working days after the request in event #3

5

Deadline for any new applications submitted by applicants which the ACMA has notified that it is satisfied are affiliated.

Not more than 10 working days after notification

6

Preference deadline

By this date and time, each applicant will need to:

  • lodge a completed preference nomination form
  • pay a deposit, or give a deed of financial security, to the ACMA on behalf of the Commonwealth, or do both.

11.59 pm on 16 March 2017

7

The ACMA tells registered bidders that they have been registered and may participate in the auction, and gives them information to enable their participation (e.g. information about how to access and use the online auction system).

After the preference deadline

8

Mock auction held to familiarise prospective bidders with the auction system.

To be announced

9

The ACMA notifies registered bidders about the start date and time of the first and second rounds of the auction.

At least 10 working days before the start date of the first round of the auction

10

Auction begins.

To be announced (expected to be 4 April 2017)

Withdrawing from the auction

The preference deadline is the last time for withdrawing from the auction. A person who has applied for registration as a bidder may only withdraw from the auction before the preference deadline by written notice given to the ACMA. An applicant who has withdrawn will not be readmitted to the auction.

Applicants who withdraw from the auction will remain subject to the confidentiality provisions in the Allocation Determination until after the end of the auction period. Withdrawn applicants will not be refunded their application fee, but will be refunded any deposits they have paid to the ACMA, subject to the Allocation Determination.

How to lodge auction documents with the ACMA

Auction documents may be lodged with the ACMA by:

Email: 700MHzauctionmanager@acma.gov.au*

Fax: (02) 6219 5353*

Delivery to:
The 700 MHz unsold lots Auction Manager
Spectrum Licensing Policy Section
Australian Communications and Media Authority
Red Building, Benjamin Offices
Chan Street
Belconnen ACT 2616.

*Subsections 6(2) to (4) of the Allocation Determination set out procedures for lodging documents by email or fax. Under these procedures:

  • where a document is lodged by email, the document must be included as an attachment, and if it is a statutory declaration, a statement under section 68 of the Allocation Determination, a deed or a bank guarantee—the document must be in PDF format or another format approved by the auction manager
  • where a document is lodged by email, and if it is any other type of document—the document must be in Word, RTF or PDF format, or another format approved by the auction manager
  • where a document is lodged by fax, the document must be accompanied by a cover sheet that states:
    • the sender's name, postal address, telephone number and fax number
    • the number of pages transmitted, including the cover sheet
    • if the document is a completed application form, a completed preference nomination form, a statutory declaration, a statement under section 68 of the Allocation Determination, a deed or a bank guarantee—the type of document.

Subsections 38(8), 44(8) and 75(9) of the Allocation Determination set out additional requirements for certain documents given to the ACMA by email or fax. Under these rules where a deed of financial security, delayed pre-determined price bank guarantee or a delayed winning price bank guarantee is given to the ACMA by email or fax before the applicable deadline, the original document must be received by the ACMA no later than three working days after the applicable deadline (or, if the ACMA agrees to a later time, by the agreed time) for the deed or the bank guarantee, as applicable, to be taken to have been given to the ACMA.

How to contact us

Questions about the auction can be directed to the Auction Manager, Eleanor Kay, on (02) 6219 5151 or at 700MHzauctionmanager@acma.gov.au.

For media enquiries, please contact Emma Rossi, Media Manager, (02) 9334 7719 and 0434 652 063 or media@acma.gov.au.

Last updated: 16 January 2017