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
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
A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3 A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3
Metro
Darwin
A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4 A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4
Metro
Hobart
A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5 A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5
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
A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7 A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7
Metro
Sydney
A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8 A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8
Regional
eastern
Australia
A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9 A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9
Regional
western
Australia
A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10 A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10
Remote
Australia
A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11 A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11
Lot configuration – 2.5 GHz
CCA – Package biddingPackage bidding provide the option of aggregating spectrum lots
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
A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3 A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3
Metro
Darwin
A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4 A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4
Metro
Hobart
A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5 A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5
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
A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7 A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7
Metro
Sydney
A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8 A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8
Regional
eastern
Australia
A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9 A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9
Regional
western
Australia
A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10 A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10
Remote
Australia
A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11 A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11
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
A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3 A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3
Metro
Darwin
A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4 A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4
Metro
Hobart
A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5 A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5
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
A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7 A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7
Metro
Sydney
A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8 A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8
Regional
eastern
Australia
A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9 A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9
Regional
western
Australia
A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10 A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10
Remote
Australia
A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11 A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11
CCA – Package biddingPackage bidding provide the option of aggregating spectrum lots
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
A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3 A3 B3 C3 D3 E3 F3 G3 H3 I3 J3 K3 L3 M3 N3
Metro
Darwin
A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4 A4 B4 C4 D4 E4 F4 G4 H4 I4 J4 K4 L4 M4 N4
Metro
Hobart
A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5 A5 B5 C5 D5 E5 F5 G5 H5 I5 J5 K5 L5 M5 N5
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
A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7 A7 B7 C7 D7 E7 F7 G7 H7 I7 J7 K7 L7 M7 N7
Metro
Sydney
A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8 A8 B8 C8 D8 E8 F8 G8 H8 I8 J8 K8 L8 M8 N8
Regional
eastern
Australia
A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9 A9 B9 C9 D9 E9 F9 G9 H9 I9 J9 K9 L9 M9 N9
Regional
western
Australia
A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10 A10 B10 C10 D10 E10 F10 G10 H10 I10 J10 K10 L10 M10 N10
Remote
Australia
A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11 A11 B11 C11 D11 E11 F11 G11 H11 I11 J11 K11 L11 M11 N11
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