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Auction of 15 MHz of spectrum in 2010-2025 MHz Band

Auction of 15 MHz of spectrum in 2010-2025 MHz Band. Brendan Vernon Pricing and Policy Branch ACMA. Outline. What? – Allocation of 10 MHz (2010-2020MHz) and 5 MHz (2020-2025 MHz) Where? – In 8 areas* (generally state-based) How? – Simultaneous Multi-Round Auction

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Auction of 15 MHz of spectrum in 2010-2025 MHz Band

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  1. Auction of 15 MHz of spectrum in 2010-2025 MHz Band Brendan Vernon Pricing and Policy Branch ACMA

  2. Outline • What? – Allocation of 10 MHz (2010-2020MHz) and 5 MHz (2020-2025 MHz) • Where? – In 8 areas* (generally state-based) • How? – Simultaneous Multi-Round Auction • Term? – 15 year Spectrum Licences • When? – expected in 3rd Quarter 2006 • What for? – Optimised for Broadband Wireless (BWA) Time Division Duplex (TDD). Other technologies can be used but must conform with technical framework

  3. What’s for sale? • Allocation of 10 MHz segment (2010-2020 MHz) and 5 MHz segment (2020-2025 MHz) in populated areas* • Spectrum set aside for TDD services at WARC-92 • Spectrum currently used in Australia for fixed links who have until 2007 to vacate spectrum • No competition limits on bidders • Spectrum licences previously sold by ACMAs predecessor, the ACA, have not had rollout obligations

  4. Where? • 8 areas* • NSW/ACT, South Qld, Nth Qld, Vic/Southern NSW, SA, WA, Tasmania, Darwin (note: not remote areas) • These areas were chosen because: (a) local area regional BWA allocated at 1.9 GHz; (b) wide-area and sphere of influence considerations • Only 10 MHz in WA due to presence of Gnangara (Perth) tracking station adjacent to 2020-2025 MHz*

  5. Market areas

  6. How?Simultaneous Multi-Round Auction (SMR) • 15 lots (8 areas* x 2 spectrum segments) • Auction runs on-line • All lots on offer at the same time • Applicants bid (or withdraw bids) over many rounds • Bidders can bid on any lot, or any combination of lots • Results posted on ACMA website at end of each round • All lots remain unsold until no further bids on any lot

  7. Term and Licence Conditions • 15 year spectrum licences • Spectrum licensing frees up the use of spectrum space, rather than just setting conditions for devices, their site and emissions • Licences defined by geographic area and bandwidth, with emission limits at the boundaries • Technology neutral/flexible (within limits) • Licences are divisible and tradable

  8. What for? Overseas use of TDD bands 2010-2025 MHz • Finnish regulator has awarded licence to Skyweb who will sell mobile BWA and voice (VOIP) services in Finland • IP Mobile to commence mobile BWA, multimedia and voice (VOIP) services in 3 largest Japanese cities in October 2006 1900-1920 MHz • BWA in this band is commercially deployed in the Czech Republic (TMobile), Slovakia (Orange), Malaysia (Maxis/Telecom), Portugal and Australia

  9. Overseas use of TDD bands (contd) • Trials of mobile television TDtv in UK (Orange) and 3 European countries in 2006 Other bands • NZ - Whoosh Wireless uses IP wireless equipment for BWA • TDD is commercially deployed or in trials in US (Sprint), South Africa (iBurst), Nigeria, Germany, Sweden and Lithuania

  10. Other Broadband Wireless allocations in Australia Spectrum licences (15 years) • Unwired offering services in Sydney at 3.4 GHz* • Austar and Unwired both have spectrum at 2.3 GHz and 3.4 GHz with rollout plans • Personal Broadband Australia (iBurst) offering services at 1.9 GHz in Sydney, Melbourne, Brisbane, Canberra and Gold Coast. • Telstra, Optus and Vodafone have 5 MHz at 1.9 GHz

  11. Other Broadband Wireless allocations in Australia (contd) Apparatus Licences (5 years*) • Local area licences allocated over the counter at 1900-1920 MHz in regional areas in 2005 • 253 applications received representing 130 townships of which 170 approved • Licences subject to rollout obligations over 2 years • End Year 1 - licensee acquired a transmitter and arranged site access • End Year 2 - commenced a legal BWA service • 3.4 GHz - licences issued in some regional areas

  12. Thank you. Any questions? If you wish to have a copy of this presentation or any other details please email Brendan.vernon@acma.gov.au Brendan Vernon Manager Market Analysis Pricing and Policy Branch Australian Communications and Media Authority PO Box 78, Belconnen ACT 2616 ph: (02) 6219 5262 fax: (02) 6256 5231 http://acma.gov.au

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