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Co-ordinated Auction of Spectrum 1785 -1805 MHz - Information Memorandum

Correction to Information Memorandum – Co-ordinated Auction of Spectrum 1785-1805 MHz

On page 19, Note 1 below Table 4.5 states: “The lowest carrier centre frequency will be 1784.5 MHz”. This text should read as follows: “The lowest carrier centre frequency will be 1785.4 MHz”

The error was repeated at Note 1, paragraph 8 of schedule 1 to the draft licence, published on page 77 and the text should read as follows: “The lowest carrier centre frequency will be 1785.4 MHz”.

This change will be reflected in the licence that is awarded as a result of the award process.



Executive Summary

The Memorandum

2.1 The Memorandum provides information for those parties considering bidding for the licence under the Wireless Telegraphy Act 1926 in Ireland (the “Ireland Licence”) and in respect of the award in Northern Ireland under the UK’s Wireless Telegraphy Act 2006 to establish or use stations for wireless telegraphy or install or use apparatus for wireless telegraphy in the Spectrum Band in Northern Ireland (the “NI Licence”). References in the Memorandum to the “Licences” should be read as references to both the Ireland Licence and the NI Licence.

2.2 In particular, in the Memorandum:

2.4 There are also nine annexes to this document. These annexes are:

Summary of rights, obligations and rules

The following table (Table 2.1) presents a summary of the packaging of the Spectrum Band for the Licences, the rights and obligations under the Licences to be issued, and the rules for the conduct of the Award Processes in Ireland and Northern Ireland.

Table 2.1 Summary of the packaging of the Spectrum Band, the rights and obligations under the Licences to be issued and the rules for the conduct of the Award Processes in Ireland and Northern Ireland

 

Ireland Northern Ireland

Spectrum Packaging and Licensing

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 Band to be auctioned is 20 MHz from 1785 -1805 MHz and is un-paired.

Transmission rights

Licensees will have the transmission rights set out in Section 4 as specified by the Licences. The transmission rights will include the right to use the Spectrum Band nationally for any technology and any application.

For stations that are installed and operated at a fixed location the limits shown in Figure 4.1 and tables 4.1 to 4.4 will apply.

For all mobile stations the limits shown in Figure 4.2 and table 4.5 will apply.

International co-ordination obligations

ComReg and Ofcom will have a role in the process of international frequency co-ordination.

The basis for frequency co-ordination is set out in a Memorandum of Understanding between Ireland and the UK, details of which are given in Annex 8.

Interference to and from other spectrum users and coordination

The unwanted emission level must not exceed -126 dBm/100 kHz measured at a separation distance of 20 metres.

The Licensees will be required to co-ordinate the use of the Spectrum Band with GSM 1800 base stations operating in the frequency band 1751.7 to 1781.5 MHz. The specific conditions relating to this co-ordination requirement are given in Section 4 of this Memorandum.

International co-ordination obligations

ComReg and Ofcom will have a role in the process of international frequency co-ordination.

The basis for frequency co-ordination is set out in a Memorandum of Understanding between Ireland and the UK, details of which are given in Annex 8.

Licence term

The Ireland Licence will have a minimum term of 15 years and be reviewed 3 years before the end of the minimum term.

The NI Licence will have an indefinite duration, but will be terminable on not less than five years notice for spectrum management reasons. However, such notice will not be able to take effect during the first 15 years. The NI Licence may be terminated for other limited reasons, specified in the NI Licence, prior to the end of the 15 year term. In effect, the NI Licence will have a minimum term of 15 years in which Ofcom’s revocation powers will be limited.

Licence fees

The Award Processes 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 Ireland Licence is not tradable at the time of the auction.

All rights and obligations arising under the NI Licence will be tradable from the date of award.

Publication of information

Site Viewer is a national database of GSM and 3G mobile masts in use throughout Ireland. ComReg has provided an on-line facility to allow the public to view details of the   mobile phone base stations. ComReg invites the holder of the Ireland Licence, if they use one of the technologies covered by Site Viewer, to provide relevant information.

Sitefinder is a national database of mobile phone base stations which Ofcom administers on behalf of the UK Government. The UK Government invites the holder of the NI Licence, if they use one of the technologies covered by Sitefinder, to provide relevant information on a voluntary basis.

Award mechanisms and Rules

Basic auction format

A single round sealed bid auction format will be used for both Award Processes.

Sequence for auctions

The Award Processes will commence on the same day. The auction in Ireland will be concluded first. The auction in Northern Ireland will follow.

Determining the successful bidders

 In each jurisdiction, the winning bid for each Licence will be the highest bid in that auction. In each auction, a tie between bidders shall be settled by a method of random selection.

Payment terms

In each jurisdiction, winning bidders will be required to pay 100% of the Licence Fee before the Licence is issued.

Deposits

In Ireland, bidders will be required to submit a cash deposit equal to 50% of the reserve price with their application.

In Northern Ireland, Applicants will be required to submit a cash deposit equal to 50% of the reserve price (Initial Deposit) with their application. Where an Applicant is qualified to bid and has not withdrawn from the Award process, it will be required to submit a further deposit equal to the difference between the Initial Deposit and the sum which it wishes to bid for the NI Licence (Bid Deposit). The Bid Deposit must be received by Ofcom on the same day that it receives the Sealed Bid for the NI Licence.

Pricing rule

In each jurisdiction the winning bidder will pay the second highest price bid for that Licence in the relevant Award Process.

Transparency

There will be separate registration processes in Ireland and Northern Ireland. Participation in the auctions, and the identities of all those registered in both auctions will be made public on ComReg’s and Ofcom’s websites .

ComReg and Ofcom will publish the identities of the winning bidders.

Prohibitions on bidder association and collusion

There are specific rules listed in the Memorandum to prohibit collusion which is also prohibited under Irish, UK and European competition law.

Reserve prices

There are two reserve prices set, one for the Ireland Licence and one for the NI Licence.

The reserve price for the Ireland Licence will be €150,000 (one hundred and fifty thousand euro)

The reserve price for the NI Licence will be £50,000 (fifty thousand pounds sterling)

Un-sold licences

If, after the auction, the Ireland Licence remains unsold, ComReg reserves the right to determine how to proceed in the light of circumstances at that time.

If, after the auction, the NI Licence remains unsold, Ofcom will determine how to proceed in the light of circumstances at that time.

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