Auction of 15 MHz of spectrum in 2010-2025 MHz Band: Auction of 15 MHz of spectrum in 2010-2025 MHz Band Brendan Vernon Pricing and Policy Branch ACMA


Outline: Outline What? – Allocation of 10 MHz (2010-2020MHz) and 5 MHz (2020-2025 MHz) Where? – In 8 areas* (generally state-based) How? – Simultaneous Multi-Round Auction Term? – 15 year Spectrum Licences When? – expected in 3rd Quarter 2006 What for? – Optimised for Broadband Wireless (BWA) Time Division Duplex (TDD). Other technologies can be used but must conform with technical framework


What’s for sale?: What’s for sale? Allocation of 10 MHz segment (2010-2020 MHz) and 5 MHz segment (2020-2025 MHz) in populated areas* Spectrum set aside for TDD services at WARC-92 Spectrum currently used in Australia for fixed links who have until 2007 to vacate spectrum No competition limits on bidders Spectrum licences previously sold by ACMAs predecessor, the ACA, have not had rollout obligations


Where?: Where? 8 areas* NSW/ACT, South Qld, Nth Qld, Vic/Southern NSW, SA, WA, Tasmania, Darwin (note: not remote areas) These areas were chosen because: (a) local area regional BWA allocated at 1.9 GHz; (b) wide-area and sphere of influence considerations Only 10 MHz in WA due to presence of Gnangara (Perth) tracking station adjacent to 2020-2025 MHz*


Market areas: Market areas


How?Simultaneous Multi-Round Auction (SMR): How? Simultaneous Multi-Round Auction (SMR) 15 lots (8 areas* x 2 spectrum segments) Auction runs on-line All lots on offer at the same time Applicants bid (or withdraw bids) over many rounds Bidders can bid on any lot, or any combination of lots Results posted on ACMA website at end of each round All lots remain unsold until no further bids on any lot


Term and Licence Conditions : Term and Licence Conditions 15 year spectrum licences Spectrum licensing frees up the use of spectrum space, rather than just setting conditions for devices, their site and emissions Licences defined by geographic area and bandwidth, with emission limits at the boundaries Technology neutral/flexible (within limits) Licences are divisible and tradable


What for? Overseas use of TDD bands: What for? Overseas use of TDD bands 2010-2025 MHz Finnish regulator has awarded licence to Skyweb who will sell mobile BWA and voice (VOIP) services in Finland IP Mobile to commence mobile BWA, multimedia and voice (VOIP) services in 3 largest Japanese cities in October 2006 1900-1920 MHz BWA in this band is commercially deployed in the Czech Republic (TMobile), Slovakia (Orange), Malaysia (Maxis/Telecom), Portugal and Australia


Overseas use of TDD bands (contd): Overseas use of TDD bands (contd) Trials of mobile television TDtv in UK (Orange) and 3 European countries in 2006 Other bands NZ - Whoosh Wireless uses IP wireless equipment for BWA TDD is commercially deployed or in trials in US (Sprint), South Africa (iBurst), Nigeria, Germany, Sweden and Lithuania


Other Broadband Wireless allocations in Australia: Other Broadband Wireless allocations in Australia Spectrum licences (15 years) Unwired offering services in Sydney at 3.4 GHz* Austar and Unwired both have spectrum at 2.3 GHz and 3.4 GHz with rollout plans Personal Broadband Australia (iBurst) offering services at 1.9 GHz in Sydney, Melbourne, Brisbane, Canberra and Gold Coast. Telstra, Optus and Vodafone have 5 MHz at 1.9 GHz


Other Broadband Wireless allocations in Australia (contd): Other Broadband Wireless allocations in Australia (contd) Apparatus Licences (5 years*) Local area licences allocated over the counter at 1900-1920 MHz in regional areas in 2005 253 applications received representing 130 townships of which 170 approved Licences subject to rollout obligations over 2 years End Year 1 - licensee acquired a transmitter and arranged site access End Year 2 - commenced a legal BWA service 3.4 GHz - licences issued in some regional areas


Slide12: Thank you. Any questions? If you wish to have a copy of this presentation or any other details please email Brendan.vernon@acma.gov.au Brendan Vernon Manager Market Analysis Pricing and Policy Branch Australian Communications and Media Authority PO Box 78, Belconnen ACT 2616 ph: (02) 6219 5262 fax: (02) 6256 5231 http://acma.gov.au