10Direction—secondary allocation process

10 Direction—secondary allocation process

(1) This direction is given to the ACMA under subsection 14(1) of the ACMA Act. Direction (2) I direct the ACMA to take such action as it considers necessary or convenient to allocate and issue spectrum licences, authorising the operation of radiocommunications devices in any part of residual 700 MHz spectrum in the designated area for which a spectrum licence has not been allocated as at the commencement of sections 9 and 10 of this instrument, in a manner that is consistent with the requirements of this instrument. Allocation instruments (3) In giving effect to this direction, the ACMA must, as it considers necessary or convenient, make or amend a marketing plan and determine allocation procedures that are consistent with the requirements of this instrument. Nothing in this instrument otherwise limits the ACMA’s power to make or amend a marketing plan, or determine allocation procedures, where the exercise of the power is consistent with the relevant parts of the instrument.

Note: Examples: The ACMA may assess the validity of an expression of interest against determined criteria, charge an application fee or require financial security be given prior to the allocation of a licence.

Lot configuration (4) Spectrum licences which may be allocated in accordance with this section must, to the extent not allocated as at the commencement of sections 9 and 10, be offered as the following two products: (a) first product—2x10 MHz lot; (b) second product—2x5 MHz lot. Method of allocation (5) Spectrum licences allocated in accordance with this section must be allocated for a pre-determined price or by way of tender. (6) The ACMA must publish an offer seeking expressions of interest in the conduct of a tender for the allocation of spectrum licences in accordance with this section. That offer must be published not later than 30 days after the date this section commences and must remain open, in respect of a spectrum licence covered by the offer, until the first to occur of: (a) the date on which the first valid expression of interest is received by the ACMA in respect of that spectrum licence; and (b) 6 months. (7) An expression of interest from a person responding to an offer for the allocation of a spectrum licence referred to in subsection 10(6) will only be valid if: (a) it identifies the spectrum licence which the person wishes to be allocated, which is a spectrum licence which may be allocated in accordance with this section; (b) it states the licence period which the spectrum licence is sought, which must be consistent with subsection 10(11); (c) it states that the person is willing to pay, for the issue of the spectrum licence, at least the reserve price determined in accordance with subsection 10(12); and (d) it otherwise complies with any requirements specified by the ACMA in the offer published in accordance with subsection 10(6). (8) If the ACMA receives a valid expression of interest for a spectrum licence in response to the standing offer, then the ACMA must, as soon as is practicable after receiving the first valid expression of interest, conduct a tender for the allocation of the licence which is open for a period of 30 days. (9) A tender conducted in accordance with subsection 10(8) must offer the relevant spectrum licence that, when issued, would have the longest licence period included in any valid expression of interest received by the ACMA for that spectrum licence. The spectrum licence is to be allocated to the person who submits a valid tender for the highest present value for the relevant spectrum licence, subject to any method determined by the ACMA for allocating that licence where two equal tenders are received. (10) If the ACMA does not receive a valid expression of interest for a spectrum licence in response to the offer, then the ACMA may allocate the licence for a licence period that is consistent with subsection 10(11) and a pre-determined price that is calculated as specified in subsection 10(12). Duration of licence (11) A spectrum licence allocated in accordance with this section must be issued to: (a) come into force no later than the date which is 18 months after: (i) if allocated by way of tender—the first valid expression of interest for the licence is received by the ACMA; or (ii) if allocated for a pre-determined price—the request for the allocation of the licence is received by the ACMA; and (b) expire no later than 31 December 2029. Pre-determined price or reserve price (12) The reserve price or pre-determined price (depending on the method of allocation) for a spectrum licence allocated in accordance with this section must be: (a) if the licence is to be issued to commence on 1 April 2018—$1.25/MHz/pop (rounded to the nearest $1,000); or (b) if the licence is to be issued to commence on a later date—$1.25/MHz/pop reduced to reflect the shorter period (and rounded to the nearest $1,000) as determined by the ACMA.