Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 Variation (No. 1) 2007

Administered by Department of Communications and the Arts

Legislation au F2007L00217 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 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 variation of marketing plans under section 42.

Purpose

The purpose of the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 Variation (No. 1) 2007 (the 2003 Marketing Plan Variation) is to amend the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 (the 2003 Marketing Plan) so licences that are expiring this year can be offered for sale.

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

The 2003 Marketing Plan Variation also updates the 2003 Marketing Plan for administrative changes that have occurred since it was made.

The 2003 Marketing Plan specifies the spectrum lots available for sale, the procedures by which they are allocated and the conditions that apply to the spectrum licences created from them. The 2003 Marketing Plan was made to allocate unsold lots from the 1997 allocation process for 500 MHz spectrum licences.

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 the 10 year licence term and their spectrum licences will expire on 31 May 2007 (expiring licences).

The expiring licences were originally offered for sale in 1997, under the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 1996 (the 1996 Marketing Plan).. However, as the expiring licences are to be offered under the 2003 Marketing Plan to reflect the 2003 licence conditions and allocation process, the 1996 Marketing Plan must also be varied to remove the expiring licences and avoid the conflict of having the licences offered in two different marketing plans at the same time.

The 2003 Marketing Plan Variation is being made to include these expiring licences in the 2003 Marketing Plan.

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, no consultation on the 2003 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 2003 Marketing Plan Variation are set out in Attachment 1.


ATTACHMENT 1

 

Notes on sections

Section 1 Name of Variation

This section gives the citation of the 2003 Marketing Plan Variation.

Section 2 Commencement

This section states when the Variation commences.

Section 3 Variation of Radiocommunications Spectrum Marketing Plan (500 MHz) 2003

This section specifies that Schedule 1 amends the 2003 Marketing Plan.

 

Schedule 1 Variations

Item 1 Subsection 1.3 (1)

This item updates the subsection by replacing ‘the ACA’ with ‘ACMA’ and restructures section 1.3.

Item 2 Subsection 1.3 (2)

This item continues to describe the parts of the spectrum that the original 2003 Marketing Plan did not cover because they were covered by the 1996 Marketing Plan, but now adds an exception for the expiring licences from the 1996 Marketing Plan that will now be allocated under the 2003 Marketing Plan.

Item 3 After subsection 1.3 (2)

This item moves the equivalent of the 2003 Marketing Plan’s subsection 1.3 (2) to subsection 1.3 (3) to allow for the restructuring above.

Item 4 Subsection 1.4 (1), before definition of Act

This item adds the definition for ACMA.

Item 5 Subsection 1.4 (1), before definition of population

This item changes how a reference is made to Schedule 3.

Item 6 Subsection 1.4 (1), at the foot

This item makes changes to reflect that there is only one note rather than a list.

Item 7 Subsection 1.4 (1), note

This item removes the term ACA from the list of terms defined in the Radiocommunications Act 1992. This is because the ACA became ACMA on 1 July 2005 and the definition for ACMA was added to the main body of the definitions in subsection 1.4 (1).

 

Item 8 Schedules 3, 4 and 5

This item provides new tables for the Schedules 3, 4 and 5.

Schedule 3 Description of areas containing available spectrum for allocation

The table in Schedule 3 has been amended to insert the additional geographic areas that are being made available for the allocation under the varied 2003 Marketing Plan. In addition, the population figures have been updated from the Australian Bureau of Statistics 2001 census figures to provide the most recent view of the population numbers in the spectrum licence areas.

Schedule 4 Coordinates of geographical areas

Schedule 4 includes the coordinates for all the geographic areas where lots are available for allocation at this time, including the 2007 expiring licences. It also improves the formatting for all the geographic areas’ coordinates, including numbering each geographic area and itemising each coordinate pair. This is intended to provide an easier system to reference each geographic area and the individual coordinates.

Schedule 5 Description of available spectrum

This schedule provides a revised table of the bands in each geographic area which are available for allocation. The list includes the lots for the expiring licences and excludes lots that were sold in previous allocations.

Item 9 Schedule 6, Licence Schedule 3, item 1

This item replaces the reference to a section of the Australian Communications Authority Act 1997 with the relevant section in the Australian Communications and Media Authority Act 2005.

Item 10 Schedule 6, Licence Schedule 3, subitem 2 (1) and subitem 2 (2)

This item corrects the terminology from ‘section’ to ‘subsection’.

Item 11 Schedule 6, Licence Schedule 3, note after subitem 4

This item corrects the terminology from ‘section’ to ‘subsection’.

Item 12 After Schedule 9

This item inserts a new schedule, Schedule 10.

Schedule 10 500 MHz Licences expiring on 31 May 2007

Schedule 10 is a table providing details about the expiring licences that are to be offered under the varied 2003 Marketing Plan.

Item 13 Further amendments

This item lists each provision that requires updating the Authority’s name from ‘ACA’ to ‘ACMA’.

Overview

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 Variation (No. 1) 2007, made under section 42 of the Radiocommunications Act 1992, was introduced to amend the 2003 Marketing Plan and allow for the sale of expiring spectrum licences in the 500 MHz band. The Australian Communications and Media Authority (ACMA), established under the Act, was tasked with varying the marketing plan to address the upcoming expiration of certain licences that were initially issued for a 10-year term in 1997. This variation ensures the licences are incorporated into the 2003 Marketing Plan, reflecting the 2003 licence conditions and allocation processes, and avoiding conflicts with the 1996 Marketing Plan. The variation also updates the administrative aspects of the 2003 Marketing Plan, including the allocation procedures and the conditions applicable to the spectrum licences, to account for changes since its original enactment. The primary purpose of this variation is to facilitate the sale of the expiring licences and update the marketing plan to reflect current administrative requirements. The variation was made without extensive consultation as there was limited interest in the band, and a Regulation Impact Statement was deemed unnecessary by the Office of Best Practice Regulation. The variation ensures that all legal and other requirements for the making of the marketing plan variation have been met, as per the legislative instruments under the Legislative Instruments Act 2003.

Scope and Application

The Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 Variation (No. 1) 2007, made under section 42 of the Radiocommunications Act 1992, is designed to amend the 2003 Marketing Plan in order to offer for sale the spectrum licences that are expiring on 31 May 2007. This variation applies to the allocation and sale of spectrum licences in the 500 MHz band, updating the 2003 Marketing Plan to include the expiring licences. The Act applies to the Australian Communications and Media Authority (ACMA), which has the authority to vary marketing plans as per section 42. The geographic reach of this Act pertains to the Australian territory, and it impacts the telecommunications industry by governing the sale and allocation of spectrum licences. There are no stated exclusions or thresholds in the Act itself, but the allocation of licences is subject to the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined price) Determination 2006, which dictates the method of sale depending on the level of competition. The 2003 Marketing Plan Variation does not include subordinate instruments that extend or restrict its application.

Key Provisions

The main operative sections of the Radiocommunications Spectrum Marketing Plan (500 MHz Band) 2003 Variation (No. 1) 2007 (the 2003 Marketing Plan Variation) are found in Section 3 and Schedule 1, which detail the amendments made to the 2003 Marketing Plan. Specifically, Section 3 states that Schedule 1 amends the 2003 Marketing Plan, and Schedule 1 outlines the specific changes, including the insertion of a new Schedule 10 which details the expiring 500 MHz licences. Section 1 provides the citation for the 2003 Marketing Plan Variation, while Section 2 specifies the commencement date of the Variation. The 2003 Marketing Plan Variation imposes several obligations and requirements on the parties involved. Primarily, the Australian Communications and Media Authority (ACMA) is tasked with updating and varying the 2003 Marketing Plan to reflect changes in administrative processes, the expiry of certain licences, and the reallocation of spectrum. This includes removing the expiring licences from the 1996 Marketing Plan to avoid conflicts and ensuring that the new plan accurately reflects the current allocation process and conditions. Additionally, ACMA must ensure that the new marketing plan adheres to the Radiocommunications (Allocation of Spectrum Licences by Auction or Pre-determined Price) Determination 2006, which governs how licences are allocated. Failure to comply with the provisions of the 2003 Marketing Plan Variation may result in various civil and administrative consequences. While the explanatory statement does not explicitly outline criminal or civil penalties, non-compliance with the Act or the marketing plan could potentially lead to enforcement actions by ACMA. Such actions may include fines, licence revocations, or other administrative sanctions. The specific penalties would be in line with those stipulated elsewhere in the Radiocommunications Act 1992, which could include substantial fines depending on the nature and severity of the breach. The explanatory statement also notes that no consultation was undertaken for this variation, as it was deemed minor and did not substantially alter existing arrangements, further highlighting the administrative nature of the compliance requirements.

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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.