8Direction—primary allocation process

8 Direction—primary 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 residual 700 MHz spectrum in the designated area, 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 charge an application fee or require financial security be given prior to the allocation of a licence.

Lot configuration and order of allocation (4) Spectrum licences allocated in accordance with this section must be offered as two products sequentially (and not concurrently) in the following order: (a) first product—2x10 MHz lot; (b) second product—2x5 MHz lot. Method of allocation (5) Subject to subsection 8(6), spectrum licences allocated in accordance with this section must be allocated by way of auction. Alternative method of allocation (6) If the ACMA considers that it can identify a person willing to make the highest value payment for the allocation a spectrum licence that may be allocated in accordance with this section, then the licence may instead be allocated for a pre-determined price that is calculated as specified in subsection 8(8). Duration of licences (7) Spectrum licences allocated in accordance with this section must be issued to come into force on 1 April 2018 and expire on 31 December 2029. Reserve price (8) The reserve price for an auction, or the pre-determined price (if not allocated by way of auction), for each spectrum licence allocated in accordance with this section must be $1.25/MHz/pop (rounded to the nearest $1,000). Payment of spectrum access charges by instalments – amounts secured by guarantee (9) If the ACMA requires a person paying spectrum access charges by instalments for a spectrum licence allocated in accordance with this instrument to provide a bank guarantee, the following conditions apply: (a) the bank guarantee is only required to be provided for the period during which any spectrum access charges remain owing by that person; and (b) the maximum amount that may be claimed by the Commonwealth under the bank guarantee must not at any time exceed 5% of the amount of the spectrum access charges owing to the Commonwealth at that time.