draft allocations instruments industry briefing, 24 april 2012

Welcome to the draft allocation instruments industry briefing session – digital dividend auction

We will begin shortly.

If you experience difficulty trying to join please email [email protected] or call + 61 3 9963 6837

mailto:[email protected]

Briefing session - overview

> Presented by Jane Cole, ACMA

> PowerPoint slideshow via GoToWebinar

> Audio via tele-conference call. The tele-conference may

be recorded for probity reasons.

> Questions during and/or after the presentation

> Webinar attendees may include journalists

> If you would like to ask a question, you can click on the ‘raise hand’ icon. This will inform the presenter that you would like to ask a question.

> When it’s your turn to speak, the presenter will un-mute your microphone.

> The chat box, which is shown here, is disabled for the webinar.

> If you are attending by phone only, you will not be able to ask questions

> Questions after the webinar can be emailed to [email protected]

Questions?Please use the ‘raise hand’ icon in Webinar

Agenda

>Tuesday, 24 April 2012, 2.00pm (Sydney, Melbourne and Canberra local time)

>Presented by Jane Cole, Manager, Major Spectrum Allocations

Item Time Topic

1 2.00 – 2.10 Welcome and introduction

2 2.10 – 2.30 Draft marketing plans for the 700 MHz and 2.5 GHz bands

3 2.30 – 2.50Draft allocation determination for the 700 MHz and 2.5 GHz bands

4 2.50 – 3.20 Questions

5 3.20 – 3.30 Next steps

Welcome and introduction

Introduction

> ACMA preparing to allocate spectrum in the 700 MHz and 2.5

GHz bands – ‘the digital dividend auction’

> Online auction using a combinatorial clock auction format

> ACMA currently preparing Applicant Information Package,

including auction instruments

> Informal consultation with stakeholders since November 2011

> Formal consultation on auction instruments commenced on 11

April 2012

> Comments welcome until Wednesday 9 May 2012

Plain English Covering Paper

Allocation Determination

(s.60)

Application Forms

Marketing Plans

(s.39A)

Unacceptable Interference (s.145)

Advisory Guidelines (s.262)

Applicant Information Pack

Today’s briefing

> Purpose:

> Opportunity for you to ask questions, seek clarification

about the draft instruments

> To assist you in preparing submissions

> Structure:

> Overview of draft instruments - focusing on key items

we would like your comments on

> Questions

> Next steps

Draft marketing plans – s39A

Draft marketing plans - overview

> Specify the spectrum products that will be available in each band

> Lot configuration

> Lot categorisation

> Describe conditions that will apply to spectrum licences issued

> Licence commencement and duration

> Licence conditions

> Cross reference allocation determination

Spectrum space

> Spectrum space = a space with:

> Frequency boundaries> Geographic boundaries> Time limitations (optional)

Lot configuration – 700 MHz band

National lot A B C D E F G H I Mid-band gap

(not on offer)

A B C D E F G H I

> Nine uniform frequency lots, each providing for coverage across one

nationwide region covering all of Australia

> Each frequency lot consists of 5 MHz in the upper and lower part of the

band

> All lots are generic (ie good substitutes)

> Separated by a mid-band gap

Lot configuration – 2.5 GHz band

> 14 uniform frequency lots, each providing for coverage across 11

discrete regions within Australia

> 8 metro areas – ACT, Adelaide, Brisbane, Darwin, Hobart, Melbourne, Sydney, Perth

> 2 regional areas – regional eastern Australia, regional western Australia

> 1 remote area

> Each frequency lot consists of 5 MHz in the upper and lower part of

the band

> Separated by a mid-band gap

Metro ACT A1 B1 C1 D1 E1 F1 G1 H1 I1 J1 K1 L1 M1 N1

Mid-band gap (not on offer)

A1 B1 C1 D1 E1 F1 G1 H1 I1 J1 K1 L1 M1 N1

Metro

Adelaide

A2 B2 C2 D2 E2 F2 G2 H2 I2 J2 K2 L2 M2 N2 A2 B2 C2 D2 E2 F2 G2 H2 I2 J2 K2 L2 M2 N2

Metro

Brisbane


Metro

Darwin


Metro

Hobart


Metro Melb A6 B6 C6 D6 E6 F6 G6 H6 I6 J6 K6 L6 M6 N6 A6 B6 C6 D6 E6 F6 G6 H6 I6 J6 K6 L6 M6 N6

Metro

Perth


Metro

Sydney


Regional

eastern

Australia


Regional

western

Australia


Remote

Australia


Lot configuration – 2.5 GHz

CCA – Package biddingPackage bidding provide the option of aggregating spectrum lots



A1 B1 C1 D1 E1 F1 G1 H1 I1 J1 K1 L1 M1 N1

Metro

Adelaide


Metro

Brisbane


Metro

Darwin


Metro

Hobart



Metro

Perth


Metro

Sydney


Regional

eastern

Australia


Regional

western

Australia


Remote

Australia




A1 B1 C1 D1 E1 F1 G1 H1 I1 J1 K1 L1 M1 N1

Metro

Adelaide


Metro

Brisbane


Metro

Darwin


Metro

Hobart



Metro

Perth


Metro

Sydney


Regional

eastern

Australia


Regional

western

Australia


Remote

Australia


CCA – Package biddingPackage bidding provide the option of aggregating spectrum lots

Lot categorisation – 700 MHz band

>Emission limits at the lower 700 MHz band edge, to manage potential

interference from spectrum licensed services into adjacent DTT services

>Draft instruments – lots are generic (no separate category of lot at the

bottom of the 700 MHz band)

Existing Broadcast Services Band (BSB) – UHF TV CHs 28-69

Future BSB:UHF TV CHs 28-51 Digital Dividend

520

MHz 82

0

MHz

694

MHz

520

MHz 82

0

MHz

Block B Block C Block D Block E

Licence commencement and duration – 700 MHz band

>Proposal to:

> Commence new licences on 1 January 2015

> Make licences subject to a condition designed to prevent interference to any

broadcasting services that remain legally operating in the band after licence

commencement

>15 year licence duration

>A separate consultation paper on a set of issues relevant to product

certainty and auction timing is planned for release in the second

quarter of 2012

Licence commencement and duration – 2.5 GHz band

>Spectrum licences for most areas commence on 1 October 2014

>Licences solely for the Perth/regional western Australia region will have a

later commencement date of 1 February 2016

>Licences that cover the Perth/regional western Australia region as well

as other areas may commence on 1 October 2014

> subject to a condition preventing the operation of radiocommunication

devices in the Perth/regional western Australia region until 1 February 2016

Marketing plans – key issues

> Lot configuration

> Lot categorisation in 700 MHz band

> Interference management condition in 700 MHz band

Draft allocation determination – s60

Draft allocation determination - overview

> Details draft CCA procedures

> Sets out the rules the ACMA intends to apply to the digital

dividend auction

> Includes draft rules on administrative matters such as the bidder

registration process, fees and other amounts to be paid

Auction rules - competition limits

>The Minister has directed the ACMA to impose limits on the amount of

spectrum that can be allocated to any one bidder and its associates

>The limits cap the total amount of spectrum that a single bidder can

acquire in each band

>Bidders will be able to acquire a maximum of:

> 20 MHz paired (40 MHz total) in the 700 MHz band

> 40 MHz paired (80 MHz total) in the 2.5 GHz band

> Paired configuration - one lot will be in the lower and one in the

upper part of the band

Draft rules - affiliated applicants

> ‘Affiliated’ applicants will not be able to participate in the auction as

separate bidders

>Two bidders will be affiliated if one is an ‘associate’ of the other, or if they

have an associate in common

>Associate defined in the determination (drawn from comp. limits direction)

>The draft determination sets out rules for dealing with the identification and

treatment of affiliated applicants

Draft rules - lot ratings and reserve prices

>Lot ratings determine the relative value of a spectrum lot for the purpose

of the auction

>Lots seen as more valuable given a higher number of lot rating points

>Ratings used to set the maximum quantity of lots a bidder is initially

allowed to bid on, and the initial participation amount they must pay

>ACMA must set the lot rating and reserve price for each lot in each

frequency band after the application deadline but before the auction

>Proposing to release this information 6-8 weeks before the auction

Auction rules – key issues

>Affiliated applicants

>Lot ratings and reserve price setting (timing)

> Information policy

>Enforcement procedures

>Payment terms

Auction advertised / Applications open

Bidder tutorial

#1 Mock auction

Applications close (application deadline)

4-8 weeks

ACMA to circulate Information on affiliates to all applicants

Applicants provide a statutory declaration re affiliates, or make a new application

Registrations close (eligibility deadline)

*AUCTION*

#2 Mock auction

within 1 week

Reserve prices and lot ratings provided to applicants/ Registrations open

ACMA considers affiliations between applicants

ACMA confirms registrations

3-4 weeks at least 3 weeks 5 working days(not more than) 10 working days

within 5 working days15 working days Up to 1 week

Deadline for any new applicants arising from affiliation process to complete application

APPLICATION STAGEBy the application deadline, applicants will need to:> submit a completed application form> submit a completed deed of

acknowledgement> submit a completed deed(s) of

confidentiality> pay the application fee

REGISTRATION STAGEBy the eligibility deadline, applicants will need to:> submit a completed eligibility

nomination form > pay an eligibility payment (linked to

nominated initial eligibility points) or provide a completed Deed of Financial Security

Application and registration process - timeline

Next steps and Q&A

Next steps

>The ACMA welcomes comments on the draft instruments until

Wednesday 9 May 2012

>A separate consultation paper on a set of issues relevant to product

certainty and auction timing is planned for release in the second quarter

of 2012

>All comments will be considered in preparing the final instruments,

expected to be released as part of the AIP in the second half of 2012

> If you would like to ask a question, you can click on the ‘raise hand’ icon. This will inform the presenter that you would like to ask a question.

> When it’s your turn to speak, the presenter will un-mute your microphone.

> The chat box, which is shown here, is disabled for the webinar.

> If you are attending by phone only, you will not be able to ask questions

> Questions after the webinar can be emailed to [email protected]

> www.engage.acma.gov.au/digitaldividend

Questions?Please use the ‘raise hand’ icon in Webinar

draft allocations instruments industry briefing, 24 april 2012

Technology

questions questions

midband gapnational

spectrum space spectrum

spectrum licences

spectrum products

overview of draft instruments

uniform frequency lots

introduction acma