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Executive summary

2.1 This document consults on the proposed award of spectrum licences by ComReg and Ofcom, the Irish and UK national regulatory authorities. It sets out in detail proposals to award, through separate auction processes, wireless telegraphy licences to use the Spectrum Band 1785–1805 MHz (the Spectrum Band).

An overview of key proposals

2.2 Auctions are proposed for the award of wireless telegraphy licences authorising the use of the Spectrum Band. For jurisdictional reasons these auctions must be separate legal processes. But in order to provide an opportunity for service providers to use the spectrum as efficiently as possible and to address the largest possible market it is proposed to plan and award wireless telegraphy licences in a co-ordinated way. This means that, as far as possible, the key elements of the proposed spectrum packaging and licensees’ rights and obligations, whilst legally separate in each jurisdiction, will be identical.

2.3 The proposal to use auctions as the method for assignment and the other proposals relating to the details of this award are consistent with the aims and objective for the award, and in particular the aim of securing optimal use of the spectrum. The objective is not to raise revenue by means of spectrum auctions given ComReg’s and Ofcom’s duties and functions.

Auction design options

2.4 The feasibility of a co-ordinated spectrum award is largely determined by the ability to construct, on spectrum efficiency grounds, co-ordinated processes that maintain the legally separate powers of Ireland and the UK and legally separates the licences awarded and managed by the respective jurisdictions. The special nature of this proposed spectrum award arises because of the potential additional spectrum and economic efficiencies available.

2.5 The pros and cons of the various options for granting spectrum licences in a co-ordinated, objective, transparent and non-discriminatory manner have been examined. From this examination a sequential sealed bid auction has been identified as the most suitable option from the many that are potentially available for the award.

2.6 The auction design options are discussed in section 8 and in Annex E.

2.7 Table 2.1 below sets out in summary form both ComReg’s and Ofcom’s proposals for the licence awards.

Table 2.1 Summary of proposals

Spectrum Packaging and Licensing
	Ireland	Northern Ireland
Usage restrictions	There are no application specific restrictions. The licences will be technology and application neutral.
Number of licences	One in Ireland.	One in Northern Ireland.
Spectrum band	The spectrum block to be auctioned is 20 MHz from 1785-1805 MHz and is un-paired.
Transmission rights	Licensees will have the transmission rights specified in section 6. This includes: the right to use the Spectrum Block for any technology and any application; and A maximum equivalent isotropic radiated power (EIRP) of 56 dBm per MHz within the Spectrum Band.
Interference to and from other spectrum users	Licensees will have to adhere to a technology and application neutral block edge mask (see section 6 and Annex C). An out-of-block limit for unwanted emissions of -126 dBm per 100 kHz is proposed. Prospective licensees should note the possibility of interference to and from other spectrum users. As guidance, the technical characteristics of the current adjacent spectrum band uses is given in Annex C.
International coordination obligations	ComReg and Ofcom will have a role in the process of international frequency coordination. The requirement for coordination is discussed in section 4 and Annex C.
Licence term	In Ireland the licence will have a minimum term of 15 years with a review of the licence period within 3 years of the expiry date.	In Northern Ireland the licence will have an indefinite term with a minimum term of 15 years, subject to 5 years notice of revocation after that period for spectrum management purposes, which could lead to the licence being terminated the day after the expiry of the 15 year minimum term or any time thereafter.
Licence fees	The auctions will determine the fees payable for each licence in each jurisdiction. In Northern Ireland, if the licensee continues to hold the licence beyond the minimum term of 15 years, there may be additional charges in line with UK policies for spectrum pricing at that time.
Spectrum trading	The licence(s) will not be tradable.	All rights and obligations arising under the licence will be tradable from the date of award.
Site information databases	Licencees in Ireland may be required to provide information for inclusion on the Siteviewer database.	Sitefinder is a national database of mobile phone base stations which Ofcom administers on behalf of the UK Government. The UK Government would like to invite all licensees in the Spectrum Band if they use one of the technologies covered by Sitefinder to provide relevant information on a voluntary basis. See Annex D for details.

Award mechanisms and Rules (See also section 8 and Annex E)
	Ireland	Northern Ireland
Basic auction format	A sealed bid auction format is proposed for both awards.
Sequence for auctions	The auctions will be held in quick succession. The auction in Ireland will be first in the sequence. The auction in Northern Ireland will follow.
Determining the successful bidders	In each jurisdiction, the winning bid for each licence in each auction will be the highest bid. In the event of a tie lots will be drawn to determine the winning bid.
Payment terms	Winning bidders will be required to pay 100% of the fee before each licence is issued.
Pricing rule	In each jurisdiction, and for each licence auctioned separately, the winning bidder will pay the second price bid for that licence.
Transparency	There will be a registration process for participation in the auctions, and the identities of all those registered will be made public.
Prohibitions on bidder association and collusion	There will be specific rules to prohibit collusion.
Reserve prices	Two reserve prices will be set, one for the licence awarded by ComReg and one for the licence to be awarded by Ofcom. The reserve price for the Ireland licence will be €150,000 The reserve price for the Northern Ireland licence will be £50,000
Deposits	In each jurisdiction, bidders will be required to submit a cash deposit with their bid. The level of the deposit will be set at 50% of the amount.
Un-sold licences	If after the auction one or both licences remain unsold, ComReg and Ofcom will each determine how to proceed in the light of circumstances at that time.

Q.1 Do stakeholders agree with these proposals for the award of this band or have any other comments on the contents of this document?

Next Steps

2.8 ComReg and Ofcom welcome comments on these proposals from interested parties. The consultation closes on 2 March 2006.

2.9 The method for responding to this consultation is given at Annex A. You may respond either to ComReg or Ofcom. ComReg and Ofcom expect to share the responses received by each administration, so that proposals for the award can continue to be developed in a co-ordinated way.

2.10 Prior to the close of the consultation, ComReg and Ofcom plan to hold joint seminars on the proposals for interested parties in Belfast and Dublin.

2.11 Subject to the outcome of this consultation, ComReg and Ofcom propose holding the auctions for wireless telegraphy licences to use the Spectrum Band in 2006.

2.12 After considering the responses to this consultation, ComReg and Ofcom will publish a joint response and then may publish information memoranda describing in detail the relevant information for the separate awards such as the procedures and rules, licence conditions and other information for each jurisdiction likely to affect the use of the Spectrum Band.

2.13 Before any auction is held:

• ComReg will publish and consult on draft regulations prescribing inter alia the terms and conditions of the licence in Ireland in accordance with Section 6 of the Wireless Telegraphy Acts 1926 to 1988, as amended; and
• Ofcom will publish and consult on draft UK regulations setting out the auction rules for the Northern Ireland licence.

2.14 ComReg and Ofcom expect to hold further “question and answer” sessions on the auction rules, in particular to ensure that bidders understand the processes.

The full document is available below:

• Award of available spectrum: 1785 - 1805 MHz [pdf]
  Full Print Version

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