ACMA - ACA - MR3504

Media release	Contact: paul.slocum@acma.gov.au

Media release No. 35 - 06 May 2004

Reserve prices proposed for SmartNumbers™

The Australian Communications Authority (ACA) is proposing reserve prices of up to $45,000 for easy-to-remember phone numbers which will be sold in the first-ever commercial online number auction starting in August 2004.

In the auction, valuable six-digit 13 numbers and 10-digit 1300 and 1800 numbers, to be called smartNumbers™, will be offered for the first time. The ACA developed the new allocation system following an announcement in the 2003 federal Budget.

"Certain phone numbers are expected to be highly valuable because they can form a word, such as 13 TAXI or have a numeric pattern, like 1800 27 27 27," Acting ACA Chairman Dr Bob Horton said. "The highest reserve prices cover up to four per cent of all the numbers available for auction.

"Reserves for other less memorable number combinations could be as low as $500," Dr Horton said. "These numbers make up most of those to be made available."

"What we've done is to differentiate reserve price ranges for certain word and number patterns. This will ensure that numbers are available to meet demand while providing a fair return to the community for this valuable resource."

The ACA has called for comment about the reserve prices it is proposing and has released a discussion paper. Reserve pricing for SmartNumbers™ auctioned freephone & local rate numbers, which is on the ACA website.

Proposed ranges for reserve prices for smartNumbers™ and some examples of patterns and numbers are set out in the tables below.

"We're looking for feedback about the ACA's approach to setting the reserves, the different categories nominated and the price ranges proposed for each category," Dr Horton said.

"The auctioning of valuable local rate numbers provides an alternative to the existing administrative allocation system where the choice of numbers is minimal.

"It also provides immediate access to the whole population of 13, 1300 and 1800 numbers available, while the existing approach of a slow, sequential allocation will also be maintained for non-auction applications."

The new system will enable users to individually target and bid at auction for more than 1.8 million specific numbers, including approximately 1.2 million numbers not previously available.

There will be a separate preferential auction system for charities. To recover costs, a nominal reserve price of $100 has been set for this system, which is expected to commence in July 2004.

Successful bidders in both auctions will have the right to use the numbers indefinitely, subject to some constraints.

Submissions and comments on the discussion paper should reach the ACA by 26 May 2004. They can be sent to:

Ms Bridget Smith
Manager, Market-based Number Allocation Project
Australian Communications Authority
PO Box 13112 Law Courts Melbourne VIC 8010
or by email Bridget Smith.

Table 1: Proposed ranges for reserve prices for SmartNumbers^TM

Proposed reserve price category	Basis for differentiation	Proportion of numbers to which reserve price is to apply	Reserve price range proposed
			13 numbers	1300 numbers	1800 numbers
Platinum	Numeric pattern	Up to 2%	$25,000–$30,000	$35,000–$45,000	$35,000–$45,000
Diamond	Word value	Up to 2%	$10,000–$15,000	$10,000–$15,000	$10,000–$15,000
Gold	Numeric pattern	Up to 4%	$8,000–$10,000	$10,000–$15,000	$10,000–$15,000
Opal	Word value	Up to 8%	$2,000–$4,000	$2,000–$4,000	$2,000–$4,000
Silver	Numeric pattern	Up to 15%	$1,000–2,000	$2,000–$3,000	$2,000–$3,000
Other	Low or no identified numeric pattern or word value	69% or more	$500	$500	$500

Some examples of patterns and numbers

Type	Category	Pattern example	Example
13 (six digit)	Platinum	Quadruple	134444
	Gold	Palindrome	137447
	Silver	Ends in triple	132555
	Other	Random increasing	132578
1300 or 1800	Platinum	Two triples	1800777666
(10 digit)	Gold	Palindrome, with central quadruple	1300544445
	Silver	Double, then quadruple	1800229999
	Other	Starts with a double	1300336457

The Australian Communications Authority is a government regulator of telecommunications and radiocommunications

For more information contact:	All media enquiries:
Bridget Smith	Paul Slocum
Manager Market-based Number Allocation Project	Manager Communications
Telephone: (03) 9963 6910	Telephone: (03) 9963 6966
	Mobile: 0408 152 471