Radiocommunications (Spectrum Licence Allocation - Pre-determined Price) Determination 2000

Radiocommunications (Spectrum Licence Allocation  Pre-determined Price) Determination 2000

The AUSTRALIAN COMMUNICATIONS AUTHORITY, under section 60 of the Radiocommunications Act 1992, determines the following procedures to be applied in allocating spectrum licences for a pre-determined price.

Dated    8 December  2000

A.J SHAW                                                                                                                 Chair

G.W LUTHER                                                                                                        Senior Executive Manager

Contents

Part 1  Introduction

1.1             Name of determination

1.2             Commencement

1.3             Purpose of determination

1.4             Application of determination

1.5             Definitions

1.6             Approval of form

1.7             Ways in which the ACA gives information

Part 2  Allocation

2.1             ACA to identify lots and determine prices

2.2             Pre-determined price  licence for previously-held lots

2.3             Pre-determined price  licence for unsold lots

2.4             Publication of notice by ACA

2.5             Applications

2.6             Allocation

2.7             Offer of licence

2.8             Duration of licence

Part 3  Miscellaneous

3.1             Method of payment of monies to ACA

3.2             Default

3.3             Delegation by ACA

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Part 1  Introduction

1.1                                      Name of determination

This determination is the Radiocommunications (Spectrum Licence Allocation  Pre-determined Price) Determination 2000.

1.2                                      Commencement

This determination commences on 8 December              2000.

1.3                                      Purpose of determination

This determination sets out the procedures for allocating spectrum licences for a pre-determined price.

1.4                                      Application of determination

This determination applies to lots that the ACA identifies as lots to be allocated as spectrum licences for a pre-determined price and that:

(a)               are spectrum licences resumed by the ACA under a resumption agreement for this determination; or

(b)               fail to be allocated at an auction or tender conducted under a determination under section 60 of the Act for a price-based allocation.

1.5                                      Definitions

In this determination, unless the contrary intention appears:

Act means the Radiocommunications Act 1992.

auction means an auction held by the ACA in accordance with a determination under section 60 of the Act to allocate spectrum licences.

closing date means the date mentioned as the closing date for applications in the notice published under subsection 2.4 (1).

lot means a part of the spectrum identified as a lot by the ACA in the Marketing Plan.

Marketing Plan, for the allocation of part of the spectrum, means the marketing plan prepared by the ACA for issuing spectrum licences for that part of the spectrum.

pre-determined price means the price determined under section 2.2 or 2.3.

previously-held lot means a lot that, immediately before allocation of a spectrum licence for the lot, was included in a previous spectrum licence.

resumption agreement means an agreement entered into by the ACA with the licensee of a spectrum licence under section 89 of the Act.

[NOTE: Section 89 of the Act provides that the ACA may resume a spectrum licence by agreement entered into with the licensee.]

unsold lot means a lot that fails to be allocated under a determination under section 60 of the Act for a price-based allocation.

1.6                                      Approval of form

The ACA must in writing approve an application form.

1.7                                      Ways in which the ACA gives information

The ACA may give any information or documents to a person under this determination:

(a)              by letter; or

(b)              by telephone; or

(c)              by fax.

Part 2  Allocation

2.1  ACA to identify lots and determine prices

 (1) The ACA must:

(a)              identify the lots for which spectrum licences are to be allocated under this determination; and

(b)              determine the prices for licences for those lots.

 (2) For subsection (1), a lot covered by a spectrum licence that is the subject of a resumption agreement made for the purposes of this determination is taken to be a previously-held lot and to be available for allocation under this determination.             

2.2  Pre-determined price  licence for previously-held lots

For a spectrum licence for previously-held lots, the ACA is to take the following into account in working out the pre-determined price:

(a)                the bid price paid for the lot when it was auctioned;

(b)                any change in circumstances since the auction was held;

(c)                the duration of the new spectrum licence;

(d)                the administrative costs of reallocating the licence;

(e)                any other matter the ACA considers relevant.

2.3  Pre-determined price  licence for unsold lots

For a spectrum licence for unsold lots, the ACA is to take the following into account in working out the pre-determined price:

(a)                the bid price paid for similar lots that were sold by price-based allocation;

(b)                any change in circumstances since the lots were sold;

(c)                the duration of the licence;

(d)                the administrative costs of allocating the licence;

(e)                any other matter the ACA considers relevant.

2.4  Publication of notice by ACA  

(1)      Before allocating a spectrum licence under this determination, the ACA must publish a notice in a newspaper circulating nationally in Australia:

(a)                describing the parts of the spectrum for which licences are to be allocated; and

(b)                stating that the licences are to be allocated for a pre-determined price; and

(c)                setting out the pre-determined price for each licence; and

(d)                inviting people to apply for the licences, using the form approved by the ACA; and

(e)                stating the closing date and time for applications; and

(f)                 stating that, if there is more than one applicant for a licence at the pre-determined price, the ACA will allocate the licence by auction unless one of the applicants previously held the licence.

(2)      If a matter mentioned in the notice changes, the ACA must publish another notice giving details of the change in a newspaper circulating nationally in Australia.

(3) The ACA may publish other information about the allocation of spectrum licences under this determination, and may publish that information, and the notices mentioned in subsections (1) and (2), in other ways.

2.5  Applications

(1)      A person who wants to obtain a spectrum licence under this determination must apply to the ACA by sending a completed application form to the ACA in Canberra.

(2) The form must be received by the ACA in Canberra by 5:00pm Canberra time on the closing date.

2.6  Allocation

(1) If there is only one applicant for a spectrum licence at the pre-determined price for the licence, the ACA is to allocate the licence to that applicant.

(2) If there is more than one applicant for a spectrum licence at the pre-determined price for the licence, the ACA is to allocate the licence as follows:

(a)                if an applicant for a particular licence previously held a spectrum licence for the lots included in the licence  the ACA will allocate the licence to that applicant; and

(b)                in any other case  the ACA will allocate the licence by auction.

2.7  Offer of licence

(1)      The ACA must offer a spectrum licence to the person to whom the licence has been allocated (the successful applicant) at the pre-determined price.

(2)      The ACA will send each successful applicant:

(a)                a draft of the spectrum licence; and

(b)               a notice stating:

(i)                 that the applicant is offered the licence; and

(ii)               the amount of the pre-determined price payable for the licence; and

(iii)            the due date for payment ; and

(iv)             that the licence will be issued on payment of the pre-determined price and of any other amounts payable under the Act.             

2.8  Duration of licence

(1) The duration of a spectrum licence, issued in place of a spectrum licence for a previously-held lot that is resumed under a resumption agreement (the reallocated licence), is for the period starting from the date when the reallocated licence comes into force and ending on a date within the period of 15 years from when the resumed licence originally came into force. 

(2) The duration of any other spectrum licence issued for unsold lots in any frequency band is the period necessary for the licence to expire on the same day as the spectrum licences for other lots in the same frequency band sold in an allocation for that frequency band.

Part 3  Miscellaneous

3.1  Method of payment of monies to ACA

(1) All payments to the ACA must be made in Australian currency.

(2) Monies due to the ACA under this determination may be paid using the real-time gross settlement system (RTGS) operated by the Reserve Bank of Australia or by electronic funds transfer (EFT).

(3) An applicant making a payment must notify the Executive Manager, Spectrum Marketing Group and the Receiver of Public Monies at the ACA by fax of the proposed payment before making a transfer by RTGS or EFT.

(4) For subsection (3), each notification must include the following details:

(a)                the name and address of the applicant;

(b)                if the applicant is an Australian registered company, the ACN or ARBN of the applicant;

(c)                the ACA client number of the applicant (if available);

(d)                the name, address, telephone and fax numbers of the contact person regarding the funds transfer;

(e)                the amount of the payment being transferred;

(f)                 the purpose for which the payment is being transferred.

(5)     A payment by RTGS or EFT must be paid into the ACA’s bank account, details of which are as follows:

(a)                BankReserve Bank of Australia;

(b)                BranchCanberra City;

(c)                BSB number092-009;

(d)                Account number92276-5;

(e)                Account nameAustralian Communications Authority Clearing Account.

(6) The applicant must pay all bank charges and Government imposed duties in respect of the transfer, and a payment will not be regarded as having been made unless the full amount net of any such charges is received by the ACA.

3.2  Default 

If the successful applicant does not pay the pre-determined price:

(a)              the applicant ceases to be entitled to be allocated the spectrum licence; and

(b)              the ACA will treat the lots involved as unallocated and may offer them for allocation at another time:

(i)                 by auction; or

(ii)              by tender; or

(iii)            for a pre-determined price or a negotiated price.

3.3                                     Delegation by ACA

The ACA may delegate to the Chair and Deputy Chair of the ACA its powers to identify lots and determine prices under section 2.1.

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