Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007

Administered by Department of Communications and the Arts

Legislation au F2007L00218 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007

Made by the authority of the Australian Communications and Media Authority under section 42 of the Radiocommunications Act 1992

Legislative provisions

Section 42 of the Radiocommunications Act 1992 (the Act) provides that the Australian Communications and Media Authority (ACMA) may, at any time, vary a marketing plan. Part 2.2 of the Act covers the making of marketing plans and applies to the variation of marketing plans under section 42.

Purpose

The purpose of the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007 (the 1996 Marketing Plan Variation) is to amend the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 (the 1996 Marketing Plan) so that spectrum licences sold under the 1996 Marketing Plan that are expiring this year can be allocated to the market.

These spectrum licences will be allocated under the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined price) Determination 2006 (the Allocation Determination). If there is competition for a licence an open outcry auction will be held, otherwise the licence will be sold at the reserve price

Background

Spectrum licences in the 500 MHz band were initially issued for a period of 10 years from 1997 to 2007. In response to an amendment to the Act in 1996, which extended the maximum spectrum licence period from 10 to 15 years, ACMA’s predecessor, the Australian Communications Authority (the ACA), offered 500 MHz spectrum licensees the chance to increase their licence term to 15 years (that is 1997–2012). Most licensees chose to accept that offer. However, four licensees decided to continue with the10 year licence term and their spectrum licences will expire on 31 May 2007 (expiring licences).

As there were only a small number of expiring licences and the 1996 Marketing Plan sets out an allocation process that is appropriate where there is high demand for the licences, the expiring licences should be offered under an alternative marketing plan that specifies a different allocation process.

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 (the 2003 Marketing Plan) was made to offer to market those lots remaining unsold from the original allocation in 1997. It provides a suitable allocation process and current licence conditions for the re-allocation of the expiring licences. The 2003 Marketing Plan has been varied to include the lots for the expiring licences.

 

 

Consultation

In February 2006, ACMA published a notice in the Commonwealth Gazette in accordance with section 78 of the Act. The notice invited expressions of interest for the expiring 500 MHz licences.

ACMA received three written responses to the notice. One licensee advised they intend to let their licences lapse on expiry in 2007. Another licensee expressed interest in acquiring a licence in Brisbane and has since traded with the licensee above. This increased the number of licensees with 2007 expiring licences to five. A third licensee responded indicating there was little interest in these licences and contended the value of this band is low, based on the factors of limited equipment in the band, short licence duration and limited spectrum aggregation opportunities.

The Office of Best Practice Regulation (OBPR, formerly the Office of Regulation Review) advised that a Regulation Impact Statement (RIS) was not required for the Marketing Plan Variations. The OBPR notes that a RIS is not required as the proposed Variations are of a minor or machinery nature and do not substantially alter existing arrangements (RIS ID: 8779).

As there has been limited interest in the band and the expiring licences and the OBPR has provided a RIS exemption due to the minor nature of the variations, no consultation on the Marketing Plan Variation was undertaken by ACMA under subsection 40(1) of the Act.

Legal and other requirements

Variations to marketing plans are made under section 42 of the Act and are legislative instruments for the purposes of the Legislative Instruments Act 2003. All legal and other requirements for the making of this Marketing Plan Variation have been met.

Attachments

Details of the 1996 Marketing Plan Variations are in Attachment 1.


ATTACHMENT 1

 

Notes on sections

Section 1 Name of Variation

This section gives the citation of the 1996 Marketing Plan Variation.

Section 2 Commencement

This section states when the Variation commences.

Section 3 Variation of Radiocommunications Spectrum Marketing Plan (500 MHz) 1996

This section specifies that Schedule 1 varies the 1996 Marketing Plan.

Section 4 application of variations

Section 4 states that the variations to the 1996 Marketing Plan do not affect the validity of spectrum licences issued before the 1996 Marketing Plan Variation.

Schedule 1 Variations

This Schedule provides the Variations to the 1996 Marketing Plan.

Item 1 Subsection 3 (1), note 2

This item adds the geographic names for the areas which will not be dealt with under the varied 1996 Marketing Plan. The additional areas are those of the 2007 expiring licences that are to be re-allocated under the varied 2003 Marketing Plan.

Item 2 Subsection 3 (1), note 2

Item 2 makes a typographical correction.

Item 3 Subsection 3 (1), note 4

This item replaces ‘the SMA’ with the current Authority’s acronym ‘ACMA’.

Item 4 Subsection 4 (1), before definition of Act

This item adds the definition for ACMA.

Item 5 Paragraph 6 (2) (a) and (b)

Paragraph (a) in this item states that the 2007 expiring licences’ areas are not to be issued under the varied 1996 Marketing Plan, as they are to be offered under the varied 2003 Marketing Plan.

Paragraph (b) in this item specifies the lots in Schedule 3 that may be issued under the Radiocommunications Spectrum Conversion Plan (500 MHz Band) 1996 (the 1996 Conversion Plan).

Before the 500 MHz band was designated for spectrum licences by the Minister under the Radiocommunications (Spectrum Designation) Notice No. 1 of 1996 (Minister’s Designation), the band was apparatus licensed. Apparatus licensees affected by the Minister’s Designation were offered the opportunity to convert their licences to 500 MHz spectrum licences under the 1996 Conversion Plan. The Authority then issued spectrum licences in accordance with the 1996 Marketing Plan for vacant spectrum and spectrum not taken up by existing apparatus licensees, except for certain areas.

Item 6 Subsection 7 (2), note

This item makes a typographical correction.

Items 7–33 Schedule 3, various tables, parts and lot numbers

Schedule 3 provides the relevant section of the geographic area and lists the details that uniquely identify each lot that makes up the expiring licences.

These items in Schedule 3, replace the existing details with the same details struck through. This ensures the expiring licences will not be available for allocation under the varied 1996 Marketing Plan.

 

Overview

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007, enacted under section 42 of the Radiocommunications Act 1992, was introduced to address the issue of spectrum licences in the 500 MHz band that were set to expire in 2007. These licences, initially issued for a 10-year period from 1997, were subject to an extension offer by the Australian Communications Authority (ACA) to extend their terms to 15 years following an amendment to the Act in 1996. However, four licensees opted to retain their original 10-year licence terms, leading to their imminent expiration. To facilitate the allocation of these expiring licences, the Australian Communications and Media Authority (ACMA) amended the 1996 Marketing Plan to specify an alternative allocation process, as outlined in the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined price) Determination 2006. The variation aims to reallocate these expiring licences under the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003, ensuring they are offered to the market through a process that reflects the current low demand for the spectrum.

Scope and Application

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007, made under the authority of the Australian Communications and Media Authority (ACMA) pursuant to section 42 of the Radiocommunications Act 1992, amends the 1996 Marketing Plan to address the allocation of spectrum licences in the 500 MHz band that are expiring in 2007. The Act applies to the variation of marketing plans and allows ACMA to adjust these plans as needed. This particular variation modifies the allocation process for the expiring licences to better suit the current demand scenario. The changes outlined in the variation do not affect the validity of spectrum licences issued before the 1996 Marketing Plan Variation. The geographic reach of this Act is national, as it pertains to spectrum licences across Australia. However, it notably excludes the areas of the expiring licences, which will be reallocated under the varied 2003 Marketing Plan. The Act does not specify exclusions or thresholds but does incorporate subordinate instruments to extend or restrict its application, such as the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined price) Determination 2006, which governs the allocation of these licences.

Key Provisions

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 Variation (No. 1) 2007, made under section 42 of the Radiocommunications Act 1992, primarily seeks to amend the 1996 Marketing Plan to facilitate the allocation of spectrum licences in the 500 MHz band that are expiring in 2007. The variation specifies that these licences will be allocated under the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006, with an open outcry auction held if there is competition, otherwise selling at the reserve price. The key operative sections are Sections 2, 3, and 4, which detail the commencement, variation, and application of the 1996 Marketing Plan, respectively. The variation explicitly states that it does not affect the validity of spectrum licences issued before the 1996 Marketing Plan Variation. The Act imposes specific obligations on the Australian Communications and Media Authority (ACMA), which includes ensuring that the expiring licences are allocated appropriately. ACMA must adhere to the process outlined in the 2003 Marketing Plan for the allocation of these licences. Additionally, ACMA is mandated to notify stakeholders of the changes and ensure compliance with the legislative requirements for marketing plan variations. The authority must also ensure that the process for re-allocation is transparent and fair, particularly in the context of the allocation of spectrum licences by auction or at a pre-determined price. Failure to comply with the provisions of the Radiocommunications Act 1992 and the Marketing Plan Variations can lead to various penalties. While the specific penalties are not detailed in the explanatory statement, generally, breaches of the Act can result in civil or criminal penalties, depending on the severity of the offence. Civil penalties may include fines, while criminal penalties could involve imprisonment, reflecting the seriousness of non-compliance with telecommunications regulations. The exact penalties would be determined based on the specific breach and the provisions of the Act.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.