Relative lot value feedback | ACMA

Relative lot value feedback

On 30 May 2012, the Australian Communications and Media Authority (the ACMA) sought comment from stakeholders on the proposed approach to determining relative values of digital dividend auction lots in the 700 MHz and 2.5 GHz bands. The following is a summary of submissions received. This information will help the ACMA to develop lot ratings and set reserve prices for the auction.


Relative value across bands

Questions asked:

  • What are stakeholder views on the relative value of bands/lots?

  • Thinking about the relative value of the 700 MHz and 2.5 GHz bands, if a national 2×5 MHz lot in the 700 MHz band was valued at 100, what would be the value of a national 2×5 MHz lot in the 2.5 GHz band?

Summary of submissions:

Two parties suggested using comparable international auction results to determine the relative value between bands. One other party suggested the 700 MHz band nationally should have identical rating to a 2.5 GHz band lot in a national area.

Relative value across geographic lots

Questions asked:

  • Thinking about the relative value of geographies, if a 2×5 MHz lot in the 2.5 GHz band situated in Sydney was valued at 100, what would be the value of a 2×5 MHz lot in the 2.5 GHz band situated in …[other regions]?

  • What are stakeholder views on the merits of setting lot ratings for geographically disaggregated lots within a band using either:
      • a population basis
      • an analysis of previous auction results?
  • If a population basis is preferred, are current population statistics or forecasts considered most appropriate? Why?

  • What are stakeholder views on setting lot ratings based on population? Please provide reasons.

  • Do stakeholders hold a position on the relevance of particular auctions to the digital dividend allocations? Please provide reasons.

Summary of submissions:

Five submissions agreed that the best way to estimate relative values between the geographic regions is based on relative aggregate population counts of each region, using the most recent population estimations. They all agreed that past auction results would not be a very good indicator of current relative value.

Technical factors

Question asked:

  • Do stakeholders believe that there are technical factors in either band that should be considered in developing lot ratings?*

Summary of submissions:

There was more variation in answer to this question. Two parties argued there were unlikely to be any significant technical factors that would lead to a variation of lot ratings within either band.

Another party argued that the best way to ensure that all 700 MHz lots are substitutable is to adopt a 3GPP-compliant framework across the entire band.

Another party argued that technical factors (in either band) should not be considered in developing lot ratings. It claimed that if there is any material advantage from operating in certain parts of the frequency range, then the assignment stage of the combinatorial clock auction is appropriate for determining the intra-band frequency ranges for successful bidders from the allocation stage.

*The original question published on engage was ‘Technical details, such as power restrictions in the band that borders the broadcasters in the 700 MHz band, are likely to impact bidders’ valuation of that band. Should lot ratings consider these technical details?’

This question was replaced by the question ‘Do stakeholders believe that there are technical factors in either band that should be considered in developing lot ratings?’ This is because the original question may have given the impression that there are significant technical differences between different parts of the 700 MHz band. The ACMA believes that all parts of the 700 MHz band are substantially equivalent from a technical perspective.


Last updated: 28 November 2016