Summary of Allocation SystemSummary of Allocation System

Summary of Allocation System

Note This summary is intended to give an overview of the allocation system. Readers who want to fully understand how the system works should study the entire determination in detail.

This determination makes provision for the allocation of parts of the spectrum between 26.5 GHz and 27.5 GHz throughout Australia that have been identified as being available for allocation under section 36 of the Radiocommunications Act 1992 (the Act). The ACA proposes to allocate spectrum licences by a simultaneous multiple round auction of spectrum allocation lots that then become the subject of spectrum licences. If applicants' needs in all areas can be met without going to auction, the licences will be offered for a pre-determined price. Details of the overall scheme for allocation and issue of spectrum licences are set out in the relevant Marketing Plan prepared by the ACA under section 39 or 39A of the Act, as applicable.

Each lot covers an area and a frequency band - for details, see the relevant Marketing Plan. Each lot has a lot rating reflecting its relative value, determined by the ACA. People wishing to bid are asked to nominate an aggregate amount of lot ratings for the lots they wish to acquire, and this will be regarded as their "eligibility" in the auction. People wishing to obtain a licence by this process must register, pay an entry fee and make a refundable proportional eligibility payment based on the eligibility they nominate. The eligibility payment is held against payment of bid withdrawal penalties as a means of discouraging applicants from abusing the auction process. An additional eligibility payment may also be required during the course of the auction if the amount of eligibility payment which has already been paid falls below 10 % of the total of high bids of an applicant.

The auction will be conducted electronically. Registered applicants may bid on any number of lots, in any combination, provided that their bidding activity does not exceed their eligibility. Applicants may nominate to be eligible for all lots (within the bidding limits), but they must make the necessary eligibility payment. Applicants interested in specific areas, or particular bands, need only make a sufficient eligibility payment to cover these.