ATTACHMENT F
EXPLANATORY STATEMENT
Radiocommunications Spectrum Marketing Plan (2010–2025 MHz Band) 2006
Made by the Authority of the Australian Communications and Media Authority under section 39A of the Radiocommunications Act 1992
Legislative Provisions
Section 39A of the Radiocommunications Act 1992 (the Act) provides that the Australian Communications and Media Authority (ACMA) must prepare a marketing plan for those parts of the radiocommunications spectrum to be re-allocated by issuing spectrum licences.
Purpose
The Radiocommunications Spectrum Marketing Plan (2010-2025 MHz Band) 2006 (Marketing Plan) specifies the spectrum lots available for sale, the procedures by which they will be allocated and the conditions that will subsequently apply to the spectrum licences created from them.
Background
In Australia there has been growing interest in the potential of wireless broadband technologies to deliver a range of services. Demand for higher speed internet access is one of the key drivers. Broadband wireless access (BWA) can provide higher data rates over greater distances and may be deployed more rapidly than current copper cable (DSL) technologies.
In response to this demand, on 4 April 2005, the Minister for Communications, Information Technology and the Arts declared the 2010–2025 MHz band in designated areas of Australia subject to re‑allocation under section 153B of the Act by issuing spectrum licences. The designated areas are defined in the Minister’s Radiocommunications (Spectrum Re‑allocation) Declaration No.1 of 2005 (the Re-allocation Declaration).
When the Minister’s Re-allocation Declaration was made, the 2010–2025 MHz band was principally used for high speed point-to-point data transmission by a major telecommunications carrier. The seven incumbents (with 24 assignments) hold apparatus licences and have been aware of the possible change to the spectrum’s designation since 2000.
In April 2006 the Minister amended the Re-allocation Declaration to change the New South Wales / Australian Capital Territory and South Queensland boundary slightly. In addition, the re-allocation deadline and re-allocation period were extended. ACMA wrote to all incumbents in May 2006 to inform them that the Minister had extended the re-allocation period to 31 December 2007.
The re-allocation is intended to enable the further expansion of BWA services by telecommunications providers in metropolitan and regional areas of Australia. This Determination is part of a set of legal instruments to give effect to the re-allocation of spectrum identified in the Re-allocation Declaration. The complete set of instruments required for this purpose is listed below:
● Radiocommunications (Spectrum Re‑allocation) Declaration No.1 of 2005 (as amended);
● Radiocommunications Spectrum Marketing Plan (2010–2025 MHz Band) 2006;
● Radiocommunications (Spectrum Licence Allocation — 2010–2025 MHz Band) Determination 2006;
● Radiocommunications (Unacceptable Levels of Interference — 2010–2025 MHz Band ) Determination 2006;
● Radiocommunications Advisory Guidelines (Managing Out-of-Band Interference from Frequency Adjacent Transmitters in Spectrum Licensed Receivers — 2010–2025 MHz Band) 2006; and
● Radiocommunications Advisory Guidelines (Protection of Apparatus licensed and Class licensed Receivers — 2010–2025 MHz Band) 2006.
Consultation
In April 2004 ACMA’s predecessor, the Australian Communications Authority (the ACA), published a consultation paper inviting industry and public comment on additional bands that could be made available for BWA in view of the growing demand for broadband access services.
As a result of the interest and discussion generated by the April paper, the ACA next sought comment on a range of specific initiatives for this purpose. Some 24 submissions were received in response to the second paper with most respondents supporting the proposed release of additional spectrum for BWA. Responses also showed that small and regional operators preferred apparatus licences covering small regional areas, while most of the larger carriers sought spectrum licences covering larger areas. To address these differing requirements the following three initiatives were proposed:
- allocating apparatus licences in the 1900–1920 MHz band in regional and remote Australia;
- introducing new arrangements in the class licensed 5.8 GHz band in regional and remote Australia; and
- allocating wide-area spectrum licences in the 2010–2025 MHz band in metropolitan and regional Australia by means of a price-based allocation.
This Marketing Plan is part of the implementation for the third and final initiative.
There was direct industry input to the preparation of the draft Marketing Plan through industry membership of the technical liaison group (TLG) which was established by ACMA in May 2005 for the purpose of defining the technical framework for the band which is subject to this proposed re-allocation process.
The draft Marketing Plan was subsequently published on the ACMA website in November 2005 inviting industry and public comments.
ACMA received four submissions in which the following issues were raised:
● Concerns that Tidbinbilla tracking station may interfere with spectrum licences in this band and that BWA services in close proximity to the station may cause interference to the station. These issues were addressed through the TLG and are reflected in the Marketing Plan.
● Concerns that the proposed break-up of spectrum lots in the band makes the spectrum vulnerable to spoilers, who might have anti-competitive objectives and no intention to use the spectrum to provide services. ACMA considers that the proposed division of lots minimises the potential for spoilers.
The Office of Regulation Review (ORR) advised that a Regulation Impact Statement (RIS) was not required for the package of instruments that set the arrangements for the auction of the spectrum as listed in the Background. The ORR notes that a RIS was prepared and assessed as adequate by the ORR for the Minister’s decision to re-allocate this part of the spectrum by spectrum licence (ORR ID 7901).
Legal and other requirements
Marketing Plans made under section 39A of the Act are legislative instruments for the purposes of the Legislative Instruments Act 2003. All legal and other requirements for the making of this Marketing Plan have been met.
Attachments
Details of the Determination are in Attachment 1.
ATTACHMENT 1
Notes on sections
PART 1 PRELIMINARY
Section 1.1 Name of Plan
This section gives the citation of the Marketing Plan.
Section 1.2 Commencement
This section specifies that the Marketing Plan takes effect on the day on which the Radiocommunications (Spectrum Licence Allocation─2010-2025 MHz Band) Determination 2006 (the Allocation Determination) is registered.
Section 1.3 Purpose of Plan
This section explains the reasons the Marketing Plan is required to be made. The Marketing Plan is designed to establish procedures and timetables for the re-allocation of spectrum under the Allocation Determination.
Section 1.4 Interpretation
This section states the definitions of terms used in the Marketing Plan.
PART 2 ALLOCATION OF SPECTRUM LICENCES
Section 2.1 Issue of spectrum licences
This section describes the output of the spectrum re-allocation process, namely, spectrum licences in the 2010-2025 MHz band.
Section 2.2 Identification of lots
This section describes the number and size of spectrum lots available for sale by reference to information contained in the Schedules.
Section 2.3 Allocation of lots
This section explains the relationship between the spectrum lots on offer and the spectrum licences that will be created from them after they are allocated.
Section 2.4 How licences will be allocated
This section identifies the method by which the spectrum lots will be sold (a simultaneous multi-round auction) and refers to the Allocation Determination, which contains the details of the allocation process.
Section 2.5 Lot ratings
This section defines the nature, purpose and value of lot ratings for the spectrum lots on offer, and does this in part by reference to the Allocation Determination.
The lot ratings are set by ACMA and determine the relative value of a spectrum lot for the purpose of the auction. Before the auction starts, each bidder is required to nominate an aggregate amount of lot ratings for the lots they want to obtain, and this is defined as their ‘initial eligibility’ in the auction. Bidders may then bid on any lot or combination of lots, as long as the total value of their bids does not exceed the value of their eligibility.
Section 2.6 Advertising auction
This section explains how the spectrum sale will be advertised to interested buyers, in part by reference to the Allocation Determination.
Section 2.7 Registration
This section explains how interested individuals may register to take part in this allocation of spectrum licences under the Allocation Determination.
Section 2.8 Amount of eligibility payment
This section explains the requirement for registered applicants to make an up-front security payment as a condition of participation in the allocation of spectrum licences.
Section 2.9 Entitlement to licence
This section describes the successful applicants’ entitlements to be issued a spectrum licence once all payments required under the Allocation Determination have been made by them.
Section 2.10 Draft sample licence
This section refers to Schedule 4 of the Marketing Plan, which consists of a sample spectrum licence (including potential licence conditions that may apply).
Section 2.11 Core licence conditions
This section explains what is meant by the core conditions of a spectrum licence – the core conditions define the precise parcel of spectrum space which is the subject of each spectrum licence (by reference to frequency, geography and emission limits).
Section 2.12 Other licence conditions
This section identifies other kinds of statutory licence conditions that apply but are not included in the core conditions of a spectrum licence. It includes, among other things, those conditions that relate to interference management and device registration.
Section 2.13 Determination of core licence conditions
This section refers to and applies Schedules 2 and 3 of the Marketing Plan, where the geographic area and frequency range, respectively, of each of the spectrum lots on offer are specified as part of the core conditions of the licence.
Section 2.14 Emission limits
This section refers to and applies Schedules 5 and 6 of the Marketing Plan, where the maximum emission limits allowable outside the geographic area and frequency range of the spectrum licences are specified under the core conditions of the licence.
Section 2.15 Agreements about emission limits
This section explains arrangements that allow for adjacent spectrum licensees to establish agreements to exceed their core licence conditions in certain circumstances, in accordance with Schedule 5.
Section 2.16 Duration of licences
This section specifies the period for which the spectrum licences will be issued. The period is 15 years.
Section 2.17 Registration of licences
This section specifies that ACMA is required to register licences on a public register and explains the basis for the requirement for transmitter devices deployed under a spectrum licence to be included in the register before they may be operated by or on behalf of the licensee.
Section 2.18 Trading in licences
This section explains the basis for trading of spectrum licences among licensees in the ‘secondary market’ for licences.
Section 2.19 Spectrum licences that are about to expire
This section explains the actions ACMA will take to ascertain market interest in spectrum licences which are about to expire.
Section 2.20 Re-issue of licences
This section explains how ACMA will decide whether it should re-issue a spectrum licence to the existing licence holder upon its expiry. Generally, licences will only be re-issued by auction or tender process, or for a pre-determined or negotiated price.
PART 3 SPECTRUM USAGE AND COMPATABILITY
Section 3.1 Compatibility requirements
This section explains the purpose of the ACMA radiocommunications advisory guidelines made under section 262 of the Act and which are included in the Applicant Information Package. The guidelines assist with managing and minimising radiocommunications interference.
Schedule 1 Description of areas containing lots for re-allocation
This Schedule names each of the geographic areas containing spectrum lots on offer, and lists the notional population of each area.
Schedule 2 Coordinates of geographic areas
This Schedule lists the coordinates defining each of the geographic areas.
Schedule 3 Description of lots
This Schedule defines each of the spectrum lots on offer, in terms of lot number, name of geographic area, frequency range, bandwidth and lot rating.
Schedule 4 Sample licence
This Schedule sets out a sample spectrum licence that could be made up of a number of spectrum lots in the band declared for re-allocation. It is an example only, constructed for purposes of illustration and is not an actual licence. It includes six licence schedules which are explained below.
Licence schedule 1 Licence and Technical Details
This schedule to the licence identifies the licensee, the licence issue and expiry dates and other technical details of the licence.
Licence Schedule 2 Core Conditions
This schedule contains the core conditions of the licence. The core conditions define the geographic area, frequency band and maximum permitted emission limits at the geographic and spectrum boundaries of the licence.
Licence Schedule 3 Statutory Conditions
This schedule contains other statutory conditions that apply to the licence relating to liability for charges, third party operation of transmitters, transmitter registration requirements and residency requirements for licensees.
Licence Schedule 4 Conditions included by ACMA
This schedule contains other licence conditions included by ACMA relating to:
● interference management;
● co-sited devices;
● interference management in relation to space operations and research;
● international coordination;
● information to be included in the register of radiocommunications licences maintained by ACMA; and
● agreements among licensees to exceed core licence conditions.
Licence Schedule 5 Form of Agreement for Core Conditions
This schedule reproduces the prescribed form of agreement between spectrum licensees regarding core conditions.
Licence Notes
The licence notes have no legal force but are a postscript to the sample licence document for the purposes of clarification and guidance on use of the licence.
Schedule 5 Emission limits outside the area
This Schedule specifies the maximum permitted radiofrequency emission levels outside the licence area.
Schedule 6 Emission limits outside the band
This Schedule specifies the maximum permitted radiofrequency emission levels outside the licence band.