Quick summary
The Australian Communications and Media Authority (ACMA) auctioned the 700 MHz band spectrum residual lots (the unsold lots from the 2013 digital dividend auction of 700 MHz band spectrum) sequentially as two lots on an Australia-wide basis.
All lots were sold at auction. The total revenue raised was $1,544,590,000 from two successful bidders TPG and Vodafone Hutchinson Australia (VHA). The 700 MHz spectrum band has the potential to support mobile broadband services across Australia and to allow TPG and VHA to offer customers high speed 4G mobile and data coverage.
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Auction date |
Commenced 4 April 2017 and concluded 10 April 2017 |
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Amount raised |
$1.55 billion |
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Licence expiry |
31 December 2029 |
Results
| Winning bidder |
Spectrum sold |
Winning price |
|---|---|---|
|
TPG |
10 MHz
|
$1.26 billion |
|
Vodafone Hutchinson Australia (VHA) |
5 MHz
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$285.9 million |
Spectrum details
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Band details |
738 MHz - 748 MHz paired with 793MHz -803 MHz 733 MHz – 738 MHz paired with 788MHz- 793 MHz The 700 MHz spectrum band supports mobile broadband services across Australia. |
|---|---|
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Licence type |
Spectrum licences |
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Previous use |
Analog television broadcasting |
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Licence period |
11 years and 8 months commencing 1 April 2018. |
Allocation details
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Type of allocation |
Price-based allocation of spectrum licences under s62 of the Radiocommunications Act 1992 |
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Method of sale |
The auction was conducted online using a simple clock auction (SCA) format in accordance with the procedures specified in the allocation determination. An SCA is like an English open outcry auction (EOO), where all lots may be open for bidding in a simple online ascending-bid process at the same time, or they may be allocated sequentially. The SCA format combines the simplicity of the EOO auction format with additional functionality enabled by an electronic platform. An SCA format formalises the process by which prices increase and how much time bidders are given to place bids. These 700 MHz unsold lots were allocated sequentially. |
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Competition limits |
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Allocation information |
Spectrum allocation direction – limits and payment |
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Technical information |
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Related information |
Background
The ACMA held a single auction in 2013 to reallocate radiofrequency spectrum in the 700 MHz band and the 2.5 GHz band. The spectrum became available when:
- The last analog television broadcasting services were switched off across Australia at the end of 2013. Australia’s switch to digital free-to-air television broadcasting involved services being retuned and stacked more efficiently into the broadcasting spectrum below 694 MHz. The cleared radiofrequency spectrum in the 700 MHz band is known as the ‘digital dividend’.
- In 2010, an extensive review of the 2.5 GHz band used for electronic news gathering (ENG) services recommended the ENG migrate to other frequencies (1980 to 2010 MHz and 2170 to 2200 MHz short to medium use spectrum) and the 2.5 GHz band frequency be reallocated for new uses, especially wireless communication services.
Not all the spectrum was sold at the conclusion of the digital dividend spectrum auction, two 15MHz lots of spectrum remained unsold in the 700 MHz band.
In October 2016 the Minister for Department of Infrastructure, Transport, Regional Development and Communications announced that unsold lots would be auctioned and the ACMA released a consultation paper setting out how it proposed to configure the spectrum for auction and how the auction would operate. The ACMA received nine submissions to this consultation. On 14 December 2016 the Minister directed the ACMA on two key auction settings.
- The Minister directed the ACMA to set a reserve price of $1.25/MHz/pop. This is the equivalent of the 2013 ‘digital dividend’ auction reserve price, adjusted for a shorter licence term and inflation.
- The Minister also directed the ACMA to set allocation limits of 2 x 20 MHz for the auction. The Australian Competition and Consumer Commission (ACCC) found these allocation limits would promote competition, encourage efficient outcomes in the mobile market and be in the long-term interests of end-users.
The ACMA’s overriding responsibility is to ensure that radiofrequency spectrum is allocated efficiently to maximise the overall public benefit derived from the spectrum. This is in accordance with the objectives of the Radiocommunications Act 1992.
After considering the submissions, the ACMA made the Radiocommunications (Spectrum Licence Allocation – 700 MHz Band) Determination 2016 and Radiocommunications Spectrum Marketing Plan (700 MHz unallocated lots band) 2016, then opened the auction to applicants. All the residual spectrum in the 700MHz band was sold at the April 2017 auction.