April digital dividend auction applications are open

Prospective bidders can now submit their applications to participate in the digital dividend auction.

Commencing on 16 April 2013, the ACMA will auction spectrum in the 700 MHz (the ‘digital dividend’) and the 2.5 GHz bands. The digital dividend is becoming available as a result of Australia switching from analog to digital television services.

The spectrum on offer is suitable 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 regulator has published the Applicant Information Package that sets out precise details of the spectrum on offer and provides information on how the auction will be conducted.

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.