2013 will be the year that the Australian government reaps a windfall from the sale of old analog spectrum. The sale process is known, the digital dividend, has begun this week. Old analog tv spectrum will be sold off, with telco operators presumed to be the main bidders, as the spectrum is highly valuable for mobile phone operations.
Although the change over to digital tv and the switch off of analog has gone smoothly, the process of identifying and clearing the spectrum has not been without controversy, with tv operators claiming they need to retain some spectrum for links and backup transmissions for a while.
The digital dividend only affects television at this time, because, at this stage there is no switch off date for analog radio. The radio spectrum is far less valuable than the tv spectrum, but the radio industry will also be watching it closely to see if precedents are being set that will affect radio in future.
As from today, prospective bidders can submit their applications to participate in the digital dividend auction.
Commencing on 16 April 2013, the ACMA will auction spectrum in the 700 MHz and the 2.5 GHz bands. It will be completed by this December. The spectrum is ideal for delivering advanced mobile telecommunication services, such as wireless 4G services.
‘This spectrum will further transform the way Australians communicate and do business,’ said ACMA Chairman, Chris Chapman. ‘Australia is on the cusp of realising the very significant social and economic benefit from this valuable public asset.’
To help prospective bidders prepare for the auction, the ACMA has published the Applicant Information Package that sets out details.
The Minister has directed the ACMA to set the reserve price in the 700 MHz band at $1.36/MHz/pop. In the 2.5 GHz band, the ACMA has set the reserve price at $0.03/MHz/pop.
The ACMA has also set the lot ratings and dollar value of each eligibility point for the auction, which are used to calculate prospective bidders’ deposits (‘eligibility payment’) for the auction.
The key dates for the auction are:
- 24 January 2013
Prospective bidders have until this date to submit an application form, deed of acknowledgement, deed of confidentiality and pay the $25,000 application fee to participate in the auction.
- 25 January – 27 February 2013
The ACMA will circulate a list of auction applicants to other applicants. During this period, applicants must declare any relevant affiliations.
- Late February to early April 2013
The ACMA will conduct mock auctions and provide bidder tutorials to ensure that prospective bidders are familiar with using the online auction system.
- 21 March 2013
Applicants have until this date to submit the eligibility nomination form and pay the eligibility payment (or, alternatively, provide a deed of financial security).
- 16 April 2013
Auction commences.
The auction will be held online using the combinatorial clock auction (CCA) methodology.