EXPLANATORY STATEMENT
Issued by the Australian Communications and Media Authority
Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Amendment Determination 2009 (No. 1)
Radiocommunications Act 1992
Purpose
The purpose of the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Amendment Determination 2009 (No. 1) (the Determination) is to update the banking details of the Australian Communications and Media Authority (ACMA) contained at subsection 2.5 (5) of the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006.
Legislative Provisions
Subsection 60(1) of the Radiocommunications Act 1992 (the Act) provides that the Australian Communications and Media Authority (ACMA) must determine, in writing, the procedures to be applied in allocating spectrum licences by auction or allocation for a pre-determined price.
A determination made under section 60 of the Act is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background
Under subsection 3(a) of the Act, ACMA must maximise, by ensuring the efficient allocation and use of the spectrum, the overall public benefit derived from using the spectrum. The use of a price-based allocation method allows ACMA to efficiently allocate licences to those who place the greatest value on the licence.
Spectrum licences are a tradeable, technology neutral spectrum access right for a fixed non-renewable term.
Operation
The Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006 provides ACMA with an efficient method of allocating spectrum licences where the demand for access to the spectrum is uncertain. The determination enables allocation of spectrum by either auction, where ACMA considers there to be high market demand, or a pre-determined price where there may be low demand for spectrum.
The Determination provides an update to ACMA’s banking details.
Consultation
Subsection 60(14) of the Act provides that ACMA must consult with the Australian Competition and Consumer Commission (ACCC) when determining procedures for allocation of spectrum licences under subsection 60(1) of the Act. The nature of this consultation is to consider whether the procedures determined under subsection 60(1) require ACMA to provide specific information to the ACCC in accordance with subsection 60(7).
The ACCC indicated to ACMA that it did not consider there was any need to amend the existing information gathering provisions in the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006 in the current amendment.
After consideration of sections 17 and 18 of the Legislative Instruments Act 2003, further consultation was not undertaken as the change to the Determination is minor and machinery in nature and does not substantially alter existing arrangements.
Regulatory Impact Statement
ACMA obtained advice from its SES contact officer for the Government’s regulation impact analysis arrangements that the Advisory Guideline has no or low impact. For those reasons under the self assessment regime administered by the Office of Best Practice Regulation (OBPR), ACMA has determined that there is no need to produce a Business Cost Calculator report or to prepare a Regulation Impact Statement.
The ACMA RIS exemption reference number is ACMA 079.
Detailed description of the Instrument
Details of the instrument are in the attachment.
ATTACHMENT
Notes on Sections
Section 1 – Name of Determination
This section gives the citation of the Determination.
Section 2 – Commencement
This section specifies that the Determination takes effect on the day after it is registered.
Section 3 – Amendment of Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006
This section states that Schedule 1 provides the amendment to the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006.
Schedule 1 – Amendment
The Schedule sets out the amendment to subsection 2.5(5) of the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006 in relation to ACMA’s banking details.
Overview
The Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Amendment Determination 2009 (No. 1) was enacted to amend the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006, specifically to update the banking details of the Australian Communications and Media Authority (ACMA) as required by subsection 2.5(5) of the Determination 2006. This amendment was introduced to ensure that the Authority's financial information is current and accurate, thereby facilitating efficient administration and compliance with the legislative requirements. The Radiocommunications Act 1992 empowers ACMA to determine the procedures for the allocation of spectrum licences, and this amendment serves to refine these procedures by updating the banking details necessary for transactions related to spectrum allocation. The policy objective underlying this amendment is to support the efficient allocation and use of the spectrum, maximising overall public benefit, which aligns with the broader aim of the Radiocommunications Act to manage spectrum in a way that promotes public interest.
Scope and Application
The Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Amendment Determination 2009 (No. 1) pertains to the Australian Communications and Media Authority (ACMA), which is responsible for managing the radio spectrum in Australia. This determination updates the banking details of ACMA as stipulated under the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006. It applies to the procedures ACMA must follow when allocating spectrum licences either by auction or at a predetermined price, which is set out in the Radiocommunications Act 1992. The primary objective is to ensure the efficient allocation and use of the spectrum to maximise public benefit. The amendment does not substantially alter existing arrangements, and consultation with the Australian Competition and Consumer Commission (ACCC) was deemed unnecessary due to the minor and machinery nature of the change. The amendment is limited to updating ACMA's banking information and does not extend to other areas of spectrum allocation or introduce new regulatory requirements.
Key Provisions
The primary provision of the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Amendment Determination 2009 (No. 1) is the update to the banking details of the Australian Communications and Media Authority (ACMA) as specified in subsection 2.5(5) of the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006 (subsection 60(1) of the Radiocommunications Act 1992). This amendment is intended to ensure that ACMA’s banking information is current and accurate, which is crucial for the financial transactions related to spectrum licences. The Determination is a legislative instrument under the Legislative Instruments Act 2003.
ACMA is required to establish and adhere to specific procedures for allocating spectrum licences through auction or pre-determined prices, ensuring efficient allocation and maximising public benefit (subsection 3(a) of the Act). The Determination provides a framework for these procedures, allowing for either an auction or a fixed price method based on market demand. Additionally, ACMA must consult with the Australian Competition and Consumer Commission (ACCC) when determining these procedures (subsection 60(14) of the Act). This consultation process ensures that the procedures comply with existing regulatory requirements and do not require additional information from ACMA to the ACCC.
Failure to comply with the provisions of the Radiocommunications Act 1992 or the Determination may result in various consequences. While specific offences and penalties are not detailed in the Determination, breaches of the Act generally may lead to enforcement actions by ACMA. These actions could include fines or other administrative penalties. Additionally, the legislative framework surrounding the Act provides for both civil and criminal sanctions in cases of significant non-compliance, although the Determination itself does not outline these specific penalties. The Regulatory Impact Statement confirms that the amendment is minor and does not substantially alter existing arrangements, indicating a focus on maintaining the efficiency and effectiveness of spectrum allocation processes.