Turn the raw legal text into a practical explanation grounded in Radiocommunications (Spectrum Licence Allocation – 850/900 MHz Band) Determination 2021.
(1) In this clause, the available activity (in eligibility points) of a bidder, immediately before an increase bid is to be processed (the relevant bid), is equal to the sum of:
(a) the difference between:
(i) the eligibility points of the bidder at the start of the clock round; and
(ii) the sum of the lot ratings for the total of the start demands of the bidder for each product at the start of the clock round; and
(b) the difference between:
(i) the sum of the lot ratings of each product in each decrease bid that has already been applied in full or in part, before the relevant bid is processed; and
(ii) the sum of the lot ratings of each product in each increase bid that has already been applied in full or in part, before the relevant bid is processed.
Increase bid applied in full
(2) Subject to subclauses (4), (5), (6), (7), (8) and (10), if, immediately before an increase bid is processed, the available activity (in eligibility points) is equal to or greater than the sum of the lot ratings for the increase bid that is to be processed, the increase bid is applied in full, such that the provisional posted demand of a bidder for lots of a product, is equal to the sum of:
(a) the number of lots of the product for the start demand of the bidder; and
(b) the number of lots for the parts of the increase bid of the product that have already been applied in part, if any, before the remainder of the increase bid is to be processed; and
(c) the number of lots of the increase bid of the product in the bid that is being processed.
Increase bid applied in part
(3) Subject to subclauses (4), (5), (6), (7) and (10), if, immediately before an increase bid is processed, the available activity (in eligibility points) is less than the sum of the lot ratings for the increase bid that is to be processed, the increase bid is applied in part, such that the provisional posted demand of a bidder for lots of a product is equal to the sum of:
(a) the number of lots of the product for the start demand of the bidder; and
(b) the number of lots for the parts of the increase bid of the product that have already been applied in part, if any, before the remainder of the increase bid is to be processed; and
(c) the quotient, when expressed in number of lots, of:
(i) the available activity (in eligibility points); and
(ii) the lot rating for the lot of the product;
rounded down to the nearest integer.
Note 1: Subparagraph (c)(i) is the numerator. Subparagraph (c)(ii) is the denominator.
Note 2: In the case of an increase bid that has been applied in part, the remainder of the increase bid will still have to be processed for the current clock round. When processed, the remainder of the increase bid will either be applied in full, applied in part, or rejected.
Increase bid applied in part – adjustment for allocation limits
(4) Subject to subclause (10), if:
(a) a bidder is not a set-aside participant; and
(b) the bid is for lots of a major population product; and
(c) but for the operation of this subclause, the provisional posted demand for lots of a product of the bidder calculated in accordance with either subclause (2) or (3), whichever is the case, would have caused the bidder to exceed the bidder’s allocation limits (when expressed in number of lots) for major population products;
the provisional posted demand of the bidder for the lots of the product is reduced by the number of lots necessary to ensure the provisional posted demand does not exceed the bidder’s allocation limits (when expressed in number of lots) for major population products.
Note 2: See also paragraph 15(1)(d).
(5) Subject to subclause (10), if:
(a) a bidder is not a set-aside participant; and
(b) the bid is for lots of a regional product; and
(c) but for the operation of this subclause, the provisional posted demand for lots of a product of the bidder calculated in accordance with either subclause (2) or (3), whichever is the case, would have caused the bidder to exceed the bidder’s allocation limits (when expressed in number of lots) for regional products;
the provisional posted demand of the bidder for the lots of the product is reduced by the number of lots necessary to ensure the provisional posted demand does not exceed the bidder’s allocation limits (when expressed in number of lots) for regional products.
Note 2: See also paragraph 15(1)(e).
(6) Subject to subclause (10), if:
(a) a bidder is a set-aside participant; and
(b) the bid is a bid for lots of a major population product; and
(c) but for the operation of this subclause, the sum of:
(i) the provisional posted demand for lots of a product of the bidder calculated in accordance with either subclause (2) or (3), whichever is the case; and
(ii) 1 set-aside lot of the 900 upper major population product;
(relevant number of lots) would have caused the bidder to exceed the bidder’s allocation limits (when expressed in number of lots) for major population products;
the provisional posted demand of the bidder for the lots of the product is reduced by the number of lots necessary to ensure the relevant number of lots does not exceed the bidder’s allocation limits (when expressed in number of lots) for major population products.
Note 2: See also paragraph 15(1)(d).
(7) Subject to subclause (10), if:
(a) a bidder is a set-aside participant; and
(b) the bid is a bid for lots of a regional product; and
(c) but for the operation of this subclause, the sum of:
(i) the provisional posted demand for lots of a product of the bidder calculated in accordance with either subclause (2) or (3), whichever is the case; and
(ii) 1 set-aside lot of the 900 upper regional product;
(relevant number of lots) would have caused the bidder to exceed the bidder’s allocation limits (when expressed in number of lots) for regional products;
the provisional posted demand of the bidder for the lots of the product is reduced by the number of lots necessary to ensure the relevant number of lots does not exceed the bidder’s allocation limits (when expressed in number of lots) for regional products.
Note 2: See also paragraph 15(1)(e).
(8) Subject to subclause (11), if, for the purposes of paragraph (4)(c), (5)(c), (6)(c) or (7)(c), the provisional posted demand for lots of a product of the bidder was calculated in accordance with subclause (2), then despite subclause (2), the bid is applied in part.
Increase bid rejected
(9) If, immediately before an increase bid in relation to lots of a product is processed (relevant bid), the quotient, when expressed in number of lots, of:
(a) the available activity (in eligibility points); and
(b) the lot rating for the lot of the product;
is less than one, the relevant bid is rejected.
Note: Paragraph (a) is the numerator. Paragraph (b) is the denominator.
(10) If:
(a) a minimum spectrum requirement has been selected for the lots of the product by the bidder; and
(b) but for the effect of this subclause, one of subclause (2), (3), (4), (5), (6) or (7) applies and the provisional posted demand calculated in accordance with the relevant subclause would have been less than the minimum spectrum requirement which has been selected for the lots of that product by the bidder;
the increase bid is rejected and the provisional posted demand for the lots of that product of the bidder is equal to zero.
(11) If the effect of subclause (4), (5), (6) or (7) is that the provisional posted demand of a bidder for the lots of a product is reduced to zero, then, despite subclauses (2) and (8), the increase bid is rejected.
Calculating posted demand and eligibility points
(12) After all the increase bids and decrease bids in the queue are processed:
(a) the posted demand for the lots of a product for a bidder for the current clock round is equal to the provisional posted demand that applies after the last bid in the queue is processed; and