Draft ministerial direction on unsold 700 MHz spectrum

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We are seeking your feedback on a draft ministerial direction to the Australian Communications and Media Authority to allocate 700 MHz spectrum to Vodafone Hutchison Australia.

Why we want your input

Spectrum in the 700 MHz band is highly valued for 4G LTE mobile broadband services.

How you can voice your opinion

Tell us what you think in writing by Friday 10 June 2016.

What will be the outcome of this consultation?

This is an opportunity for stakeholders to have their say about the proposed allocation of spectrum to Vodafone Hutchison Australia, as outlined in the draft Ministerial Direction and consultation note.

The Issue

The consultation period has been extended by one week and will now close on 10 June 2016.

700 MHz spectrum is highly valued for 4G LTE mobile broadband services due to its technical characteristics and international compatibility. 700 MHz spectrum is available under nationwide spectrum licences and forms a key element of a national mobile broadband network.

In 2013, the Australian Communications and Media Authority (ACMA) held a digital dividend spectrum auction to reallocate spectrum in the 700 MHz that had been vacated by analogue television transmission services. The reserve price for the 700 MHz lots in the auction was $1.36/MHz/pop. In that 2013 auction, Telstra purchased 2 x 20 MHz of 700 MHz spectrum and Optus purchased 2 x 10 MHz of 700 MHz spectrum. 2 x 15 MHz of 700 MHz spectrum remained unsold.

The Australian Government has received a formal proposal from Vodafone Hutchison Australia (VHA) to acquire 2 x 10 MHz of this spectrum. We invited written submissions on a draft ministerial direction to the ACMA to implement the details of VHA’s proposal. The consultation note explains the draft ministerial direction.

Relevant Documentation

Exposure draft radiocommunications spectrum licence allocation residual 700 mhz band one

Published 6th May 2016

Download PDF (511.84 KB) Download DOC (734.75 KB)

Exposure draft radiocommunications spectrum licence allocation residual 700 mhz band one

Radiocommunications spectrum licence allocation residual 700 mhz band one

Published 6th May 2016

Download PDF (318.96 KB) Download DOC (54.5 KB)

Radiocommunications spectrum licence allocation residual 700 mhz band one

Additional information 700mhz spectrum

Published 26th May 2016

Download PDF (463.76 KB) Download DOC (724.03 KB)

The ACMA has a publicly-available model that it uses for adjusting prices for shorter licence terms.

Outcome

Following the digital dividend auction, 2 x 15 MHz of 700 MHz spectrum was unsold.

On 7 October 2016 the Minister for Communications and the Arts announced the Government would be selling all of the unsold 700 MHz spectrum by auction.

On 13 December 2016 the Minister directed the ACMA on two key auction settings.

· The Minister directed the ACMA to set a reserve price of $1.25/MHz/pop. This is the equivalent of the 2013 ‘digital dividend’ auction reserve price, adjusted for a shorter licence term.

· The Minister also directed the ACMA to set allocation limits of 2 x 20 MHz for the auction. The Australian Competition and Consumer Commission (ACCC) found these limits would promote competition, encourage efficient outcomes in the mobile market and be in the long‑term interests of end-users.

A copy of the Executive Summary of the ACCC’s advice to the Minister on allocation limits.