Quick summary
The closing date for applications for apparatus licences in the 1900–1920 MHz band for fixed point to multipoint stations was 26 September 2007. Where there was only one applicant for a licence in an area, the ACMA offered that applicant the opportunity to acquire the licence for its pre-determined price: that is, without conducting an auction. On 20 December 2007, the ACMA conducted an open outcry auction to allocate licences in areas where conflicting applications were received.
|
Auction date |
26 September 2007 - 20 December 2007 |
|---|---|
|
Amount raised |
$29,804 |
|
Licence expiry |
Varies – apparatus licences were issued for periods of up to 5 years and the possibility of renewal were issued |
Results
|
Applicants |
No. of Licences |
Method of sale |
Locations |
Winning price |
|---|---|---|---|---|
|
Digital Distribution Australia Pty Ltd |
16 |
pre-determined price |
Rockhampton, Cairns, Mildura, Mackay, Wagga Wagga, Bairnsdale, Bendigo, Tamworth, Orange, Maryborough, Traralgon, Ballarat, Dubbo, Bundaberg, Warrnambool and Albury (1905–1910 MHz) |
$1,312.00 |
|
Hervey Bay City Council |
1 |
pre-determined price |
Maryborough (1900–1910 MHz) |
$82.00 |
|
Wideband Networks Pty Ltd |
5 |
pre-determined price |
Morwell, Traralgon, Callignee South, Tinamba and Sale (19**-19** MHz) |
$410.00 |
|
Vecima Networks Pty Ltd |
1 |
open outcry auction |
Shepparton (1900-1910 MHz) |
$12,500 |
|
McPherson Media Pty Ld |
1 |
open outcry auction |
Shepparton (1915–1920 MHz) |
$11,500 |
|
Digital Distribution Australia Pty Ltd |
1 |
at reserve price following open outcry auction |
Townsville (1905–1910 MHz) |
$2,000 |
|
Regional Internet Australia Pty Ltd |
1 |
at reserve price following open outcry auction |
Townsville (1900–1905 MHz) |
$2,000 |
|
Total |
$29,804 |
Spectrum details
|
Band details |
1900–1920 MHz (20 MHz unpaired in regional and remote areas not declared for spectrum licensing in 2000) |
|---|---|
|
Licence type |
Apparatus licences |
|
Previous use |
Fixed links |
|
Licence period |
up to 1 year until roll-out conditions have been met, thereafter up to 5 years |
Allocation details
|
Type of allocation |
Price based allocation of apparatus licences under s106 of the Radiocommunications Act 1992. |
|---|---|
|
Method of sale |
Open outcry auction and pre-determined price |
|
Competition limits |
No applicant permitted more than 10 MHz of spectrum in any one area. Roll-out conditions to require service provision within 2 years were applied to the apparatus licences issued. |
|
Allocation information |
|
| Technical information | |
| Related information |
Background
In March 2001 the Australian Communications Authority (ACA) auctioned spectrum licences in the 1900–1920, 1920–1980 and the 2110–2170 MHz bands for 3G mobile telephony services. In total, 48 lots were sold for $1.17 billion. The band 1900–1920 MHz was offered in major city areas only, while the other the bands were offered in major city and regional areas.
In February 2005 the ACA made fixed point to multipoint licences available for broadband wireless access (BWA) services in the 1900–1920 MHz band in regional and remote areas. This allocation supported the government’s Networking the Nation program aimed at reducing disparities in access to telecommunications services and facilities between rural and metropolitan areas of Australia. As this band was subject to spectrum licensing arrangements in metropolitan and some surrounding regional areas, apparatus licences were not available in all areas.
To expedite the availability of the licences, the ACA used a first-in-time, over-the-counter allocation process. A total of 265 applications were received but spectrum availability allowed the ACA to issue only 156 licences. The licences were issued subject to rollout obligations to encourage deployment of services and prevent spectrum hoarding. In late 2006, the ACMA’s enforcement of rollout conditions lead to licences again becoming available for re-issue in some areas of high demand.
In September 2007, the ACMA invited applications for the not-renewed, fixed point-to-multipoint apparatus licences in the 1900–1920 MHz band in these high demand areas. In view of the demand, it decided to use a price-based process for the reallocation. The spectrum made available was in regional and remote areas of Australia for wireless access services (WAS), which include wireless connection of businesses and households to the internet and to the public telephone system. As previously, the licences were not available in all areas as the 1900–1920 MHz band was subject to spectrum licensing arrangements in metropolitan and in some surrounding regional areas. Again roll-out obligations applied.
Where there was only one applicant for a licence in an area, the ACMA offered that applicant the opportunity to acquire the licence for its pre-determined price of $82 per lot (that is, without conducting an auction).
On 20 December 2007, the ACMA conducted an open outcry auction to allocate licences in areas where conflicting applications were received. The successful applicants were: Vecima Networks Pty Ltd and McPherson Media Pty Ltd. On the day of the auction, two registered applicants withdrew from the allocation process for licences in Townsville. As a result, licences were allocated at the reserve price of $2,000 per lot* to Digital Distribution Australia Pty Ltd and Regional Internet Australia Pty Ltd.
* Note: The reserve price exceeded the pre-determined price because it included a component to contribute to recovering the costs of running the auction.