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Broadband Fixed Wireless Access - Questions and Answers

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Latest Update: 28 March 2002

A number of questions and requests for clarification are expected to be raised in connection with the draft Regulations and Notice for the forthcoming auction of radio spectrum at 28GHz for BFWA. In accordance with paragraph 2.1.9 of the draft Notice, the Radiocommunications Agency lists below advice that has been given to enquirers or prospective bidders. This document will be updated periodically to include further advice as it is given.

Requests for advice or information should be submitted in writing (which includes fax and e-mail) and the questions and responses may be summarised and posted below. The questioner will not be identified.

Questions

General

* 1) What evidence must be provided to "the Government" to demonstrate existing sites were investigated for the bidder/operator's use and shown to be inadequate or unsuitable?
* 2) How far (meters) must you be from an existing site before you can build your own site?

WT Act Licence

* 1) Paragraph 2.2.5 of the Information Memorandum states that infrastructure links for other telecommunications networks are not permitted. How does the WT Act licence address the question of backhaul?
* 2) Paragraph 3(d) of the draft WT Act Licence provides for the revocation or variation of the licence in the event of a 'breach' of the terms of the licence. However, some parts of the Information Memorandum, notably Appendix 1 containing the draft Notice, refer to "material breach". Which is correct?
* 3) Is there an absolute prohibition on BFWA operators providing services below 2Mbits/second?
* 4) Are there any provisions within the Wireless Telegraphy Act Licence that would affect the ability of a Parent Company to sell all the shares in a Licensee to a third party purchaser, although the licence would continue to be held by the Licensee?
* 5) Can BFWA be used to provide closed circuit television ("CCTV") services?New
* 6) Does the provision by a Licensee of wholesale BFWA services to a customer which then provides BFWA services to the end-user contribute to the Licensee's Use it or Lose it requirement? New

T Act Licence

* 1) Would a successful Bidder be under obligation to allow other operators to interconnect with it and if so, will it be able to do this on a commercial basis?

Spectrum Issues

* 1) Will operators be restricted to transmitting internet services over the "Last Mile" or could they transmit services much further?
* 2) Will operators be told of any remaining use of these bands when licences are awarded?
* 3) Is the bandwidth being auctioned "clear" of fixed satellite usage?
* 4) Have frequency co-ordination guidelines for operators in adjacent regions been prepared?
* 5) Is the 28MHz guardband between operators free of all usage?
* 6) Have either ETSI or the Radiocommunications Agency specified which of the paired frequency channel blocks should be used for downstream and upstream signals in a multipoint to point radio system.
* 7a) Are there 47.5MHz guard bands above the highest frequency 112MHz blocks in both the upper and lower sub-bands?
b) Is there a guard band at the lower end of the sub-bands?
* 8a) What are the limitations on use of BFWA spectrum by a licensee in providing such "BFWA services" and what is meant by "BFWA services"?
  b) Is it correct that a licensed operator will be able to use the BFWA Network for transmission to and reception from an end user's Customer Premises Equipment for the purposes of providing BFWA services, but that traffic can thereafter be routed onward to another operator's network?
* 9) Can an operator in the 28GHz band place his channel centre frequencies anywhere within his block and use any channelisation up to 28MHz?

Regions

* 1) Which of the larger authorities come within the eleven English regions specified in Part 1 of the Schedule to the Wireless Telegraphy (Broadband Fixed Wireless Access Licences) Regulations 2000?
* 2) Where can you obtain the latest population data for each licence area?
* 3) Which of the larger authorities come within the eleven English regions specified in Part 1 of the Schedule to the Wireless Telegraphy (Broadband Fixed Wireless Access Licences) Regulations 2000?
* 4) What is the definition of a 'Local unit'?
* 5) What is the publication 'Inter-Departmental Business Register' and from where may information be obtained? Are enquiries chargeable?
* 6) A number of enquiries have asked questions about the extent of each of the Regions, as to which major cities and towns and districts are included. How are the Regions defined?

The Auction - General

* 1) Where is the Radiocommunications Agency located?
* 2) Does the Broadcasting Act apply to BFWA?
* 3) What is the maximum bandwidth for local loop and how much will access cost?
* 4) Has OFTEL's review of Leased Lines been released yet?
* 5) Is the PTO Licence fee £12,500 per region?
* 6) Why are prospective bidders asked to register their interest at an early stage? Does this imply any particular commitment or obligation for the enquirer?
* 7) Can companies from outside the UK participate in the Auction?
* 8) Please clarify the requirement for a bidder to have premises within 10km of the auction location, as stated in paragraph 4.2.3 of the Notice.
* 9) Is it possible to bid for one single region?
* 10) Is there a mechanism by which a Bidder may ask questions of the Agency after the Application Date?
* 11) Will the mock auctions take place in the first or second week in October?
* 12) Will there be some sort of session where the auction participants can practice with the auction tools?
* 13) Paragraph 4.3.9 of the Notice specifies that at the end of the final round no Bidder has any eligibility points remaining. If a Bidder’s activity level is the sum of the number of licences on which he is the highest Bidder plus the number of licences on which he makes a bid plus the number of waivers he notifies, how can the requirement in paragraph 4.3.9 be satisfied?
* 14) Will the Auction start on 16 October as set out in the illustrative timetable in the Information Memorandum?
* 15) Is a Bidder committed only to the Regions in which he first bids?
* 16) Are the results of every round posted onto the public website at the end of each round or each day?
* 17) What impact will the independent review of spectrum management, announced in the Pre Budget Review on 8 November, have on the 28 GHz Broadband Fixed Wireless Access Auction?
* 18) What do the Government plan to do with the unsold licences at the end of the Auction?

Mock Auctions

* 1)When will the Mock Auction be held

Auction Software

* 1)What type of software will be needed to participate in the auction?
* 2)Can you confirm the recommended ISDN terminal adapters and connection?
* 3) What type of security will be used for the Auction software?

Application/Pre-Qualification Stage

* 1) Where is the application form to be found?
* 2) Does the Application Form need to be signed?
* 3) Is it possible for a sole company to apply on 5 September 2000 for some regions and then join into a consortium with someone else?
* 4) What documents do you require to support your application form?
* 5) When will the Agency let the public know who applied on 5 September?
* 6) How long after the Pre-qualification Stage will the Agency announce the successful applicants?
* 7) If an applicants Candidate Group is too large for it to be practical to show it in diagrammatic form in section 2.1 of the Application Form, how should details of the Bidder's Candidate Group be given in the Application?
* 8) Do Bidders need to provide details of the Capital Structure (section 1.7 of Application Form) of their Candidate Group.
* 9) Does a Bidder's Holding Company form part of an Applicant's Candidate Group?
* 10) In section 2.1 of the Application Form how does a Bidder show in diagrammatic terms the relationship between the ultimate parent company and the Bidder in a group where the ultimate parent company controls a subsidiary which in turn controls the Bidder?
* 11) What is the latest date when a bidder can make a change to his Candidate Group?
* 12) In section 2.1 of the Application Form "Each shape should contain the name of the person that it represents" - is the "person" an individual within a company?
* 13) Do all shareholders for a "Private Company" have to be listed in the Application Form?
* 14) Would any change in the percentage of shares held by existing shareholders of a Bidder after the application date but before the award of any licence, breach the provisions of section 6.3.2?
* 15) Can a Consortium set up by, for example, 14 companies make 14 separate applications (one for each of the regions) for the auction?
* 16) Do all mutual directorships within the Bidder's Candidate Group need to be shown in paragraph 2.1 of the Application Form?
* 17) Is the "ultimate parent company" the highest company in the chain of corporate ownership? Do reports and accounts for such companies only have to be provided if such companies fall within the Candidate Group?
* 18a) In the following scenario could Company A bid in all Regions other than the Relevant Region, while Company B bids in the Relevant Region? Company A owns 50% of the shares in Company B, which trades exclusively in one Region (the Relevant Region). Company A is bidding for licences in several Regions, but has no operations in the Relevant Region. Company B wishes instead to bid in its own name for a licence in the Relevant Region.
* 18b) If not, could the applicable system be run by Company A the successful Bidder in all the regions but Company B provides the provision of services to Company A's customers in the relevant regions?
* 19) A question has been raised as to whether bidders who do not have a trade as such would still be able to qualify for the tax relief provided by Section 87 and Schedule 23 to the Finance Act 2000. The concern is that if the receipts from exploiting the licence are considered to be chargeable to tax under Case III of Schedule D, there are no allowable deductions to be set against them.
* 20) Can a Bidder increase or decrease their Eligibility Points prior to notification of the Auction Date?
* 21) When will the mock auctions take place?
* 22) Will the Secretary of State notify Bidders earlier then 10 days of the auction start date?
* 23) When does the period of 5 Business Days as set out in 3.2.2 of the Information Memorandum end?
* 24) Was notification of the details of other bidders and their candidate groups given by the Secretary of State to all bidders in accordance with Section 3.2.1 of the Notice on 8 September 2000? If so, does this mean that bidders have (in accordance with Section 1.1.5(j)) until midnight on Friday 15 September to respond in accordance with Sections 3.2.2 and 3.2.3?
* 25) What is contemplated by "merger and acquisition activity" in Section 6.3.4 of the notice? For example, would this include an internal reorganisation or consolidation within a group of companies some of which are existing members of the Bidder's Candidate Group? Also, would the establishment of a 50/50 joint venture company by a member of a Candidate Group (which is or is not a Relevant Member) with another party who is not an existing member of the Candidate Group be included in this definition?
* 26) Do Bidders have until 5.00 pm or 11.59 pm on Wednesday 13 September 2000 to resubmit their applications under paragraph 3.2.2 of the Wireless Telegraphy (Broadband Fixed Wireless Access Licences) Notice 2000?
* 27) Will Bidders be notified today (21 September) whether they have been successful in the Pre-qualification stage?
* 28) In calculating the Economic Interest that one entity (the "first person") has in another entity (the "second person") where the first person has an Economic Interest in the second person through one of the second person’s two shareholders, and also has a separate Economic Interest in the second person through the other of the second person’s shareholders, are those Economic Interests added together?
* 29) At what stage should two Bidders who determine (as a result of the notification by the Secretary of State under paragraph 3.2.1 of the Notice) that they would be Associated Bidders begin discussing which of the two of them will participate in the Auction Stage?
* 30) Would restrictions on passing Confidential Information between Bidders prevent two Associated Bidders passing such information between them for the purposes of determining which one of them should not participate?
* 31) Following publication of the DTI press release of 6 September naming applicants who have applied to bid in the 28GHz auction, will the Secretary of State also name the companies that comprise the Bidders' Candidate Groups.
* 32) In the "Notes to Editors", in the Press Release issued on 6th September naming the 12 companies who had submitted applications, the Provisional Timetable included a bullet point "Notification of pre-conditions by provisional winners - 10 November".
What are the pre-conditions provisional winners of BFWA licences must notify (isn’t it the body auctioning the licences, the Secretary of State, which could impose conditions on provisional winners and not vice versa)?
* 33) If the first person holds Economic Interests in the second person through both of the second persons' shareholders, those Economic Interests are added together for the purposes of determining the total Economic Interest of the first person. Paragraph 1.1.5 (g) of the Notice states that a percentage interest of 50% or more in any body corporate in the chain of ownership shall be treated as a percentage interest of 100%. Would this amount to "double counting" the economic interests of the first person in the second?
* 34) Would the transfer of shares between members of the same Candidate Group, where following the transfer both members remain members of the Candidate Group, constitute a "change in the membership of a Bidder's Candidate Group" for the purposes of paragraph 6.3.2 ?
* 35) Paragraph 6.9.2 of the Notice states that a bidder may choose to be active in fewer Regions than is consistent with the then current total of its Bidder Eligibility Points. Could the Agency set out the circumstances in which a bidder may chose to be active in fewer regions?
* 36) If a bidder consciously chooses to bid for less regions than the Activity Level in a particular Round requires, will he be fined £10,000?
  37) After Pre-Qualification can a Bidder nominate another legal entity within its Group of companies to become the Bidder?
* 38) What is the next stage in the auction process, after the Qualified Bidder Notice has be issued and completion of the Associated Bidder Certificate, which will require either a notification from the Radiocommunications Agency or an input from Bidders?
* 39) Have all the Bidders cleared the Associated Bidder process?
* 40) Can the Agency provide any background on Orange's decision to withdraw from the Auction?

Minimum Bids

* 1) Points 4.3.21 to 4.3.26 of the Notice, regarding the minimum bid, set rules for the determination of minimum increments. Point 4.3.22 states that the Secretary of State may specify different percentages for each licence. Does this imply that different minimum increments may be used to influence the pace of the auction, in particular to prevent bidding on some licences ending much earlier than on other licences?

Deposits

* 1) Does Column 2 of the table in Schedule 4 of the Notice include the initial deposit?
* 2) When may a bidder pay additional deposits?
* 3) Instead of having Additional Deposits why not allow bidders to submit a bank guarantee that covers the minimum bids on the licences they are to bid for, as with the Swiss auction?
* 4) Can the Auction rules on Deposits and Additional Deposits be clarified?
* 5) What happens to your deposit if you are unsuccessful at pre-qualification stage or in the Auction?
* 6) Can a bidder make deposits through a parent company to HMG account?
* 7) Under what circumstances would a Bidder lose his deposit?
* 8) What will be the longest deposit period and how will it be determined?
* 9) What is the mechanism for the return of deposits to persons who have made an Application for the Auction but withdrawn after the date the Secretary of State has notified applications of the Auction Date but before the Auction Date?
* 10) Pursuant to Section 3.6.6 of the Notice, where the Secretary determines that two Bidders are Associated Bidders, those Bidders have two days to notify the Secretary which of the two Bidders will be participating in the Auction otherwise neither may participate. Would such an Associated Bidder be entitled to a refund of its Deposit in the situation where, because the Associated Bidders have failed to notify the Secretary in accordance with Section 3.6.6 of the Notice, both Bidders are disqualified from the Auction? Would this fall within either of the provisions in the Notice providing for the refund of Deposits (Sections 2.3.2 and 5.4.1)?

Waivers

* 1) Do the six waivers apply to a region or the whole auction?
* 2) Isn't it unfair that a Bidder intending to bid on a large number of regions is only entitled to the same number of waivers (i.e. six) as one bidding on one or two regions?

Activity Rules

* 1) Would a Bidder incur a Penalty if they did not meet the Activity Rules within a round and as a result their "Bidder Eligibility Points" were reduced?
* 2) How will the activity rules be applied to ensure that a Bidder that starts with only one credit is not required to be busier than Bidders with several credits?
* 3) Does a Bidder have to bid on all his Bidder Eligibility Points in every Round, in order to retain them.

Penalties

* 1) Why would a Bidder incur penalties and what is the amount?
* 2) Section 6.2 of the user manual refers to Penalties. It indicates that the auctioneer may introduce a 48hour delay to allow increases in Deposits as necessary. Does this mean that the Auction will be delayed for all Bidders for 48 hours if the penalty reduces a Bidders deposit below the 10% aggregate level required?

Award Stage

* 1) Could a successful bidder be allowed to nominate a regional subsidiary as the licence holder, with the licence being awarded accordingly, as is done for local delivery operators under the Broadcasting Act?
* 2) Why not award licences to local operating companies rather than to the parent company?
* 3) May a Bidder who has won a licence in the Auction subsequently allocate all or part of the spectrum covered by that licence to another person for that person's own use?
* 4) Could a successful Bidder operate a fixed network through a separate company from that running the BFWA network?
* 5) Can a licensee offer third-party services to retailers of services such as ISPs? New

Downloadable CSV Reports

* 1) Is the data file for the BFWA Auction to be in the exact format (comma delimited) as the sample data file?
* 2) Will the data files for the BFWA Auction be the same as those for the mock auction?
* 3) Will field names be added?
* 4) How will the use of a waiver be handled in the data file?
* 5) How are drops in eligibility handled in the data file?
* 6) If a bidder withdraws from the auction, is that bidder's name removed in all subsequent rounds of the data file?
* 7) How will minimum bids for the next round be published?
* 8) What will be the name of the data file? Is it to be called "downloadable data file" in every round, or will round numbers be added?

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Answers

General

* 1) What evidence must be provided to "the Government" to demonstrate existing sites were investigated for the bidder/operator's use and shown to be inadequate or unsuitable?
It is the local planning authority that will need to be satisfied that operators have investigated using existing masts, buildings or other structures. The DETR and the National Assembly for Wales Code of Best Practice on telecommunications prior approval procedures for mast/tower development provides useful guidance on the information to be included in prior approval applications for new masts. Copies can be obtained from the DETR Tel: 020 7944 3947.
* 2) How far (meters) must you be from an existing site before you can build your own site?
There is no statutory minimum distance. Each siting will have to be judged on its own merits and will need to take into account a number of factors including the scope for interference with other operators' systems, the environmental impact of the installation, and guidelines on exposure to electromagnetic fields.


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WT Act Licence

* 1) Paragraph 2.2.5 of the Information Memorandum states that infrastructure links for other telecommunications networks are not permitted. How does the WT Act licence address the question of backhaul?
Paragraph 2 of Schedule 1 of the draft WT Act licence (Purpose of the Radio Equipment), when read in conjunction with Paragraph 1 (Description of the Radio Equipment) and Paragraph 10(b) (definition of 'Customer Premises Equipment'), determines that BFWA may be used to provide connection only between an end user and another telecommunications network. As the Customer Premises Equipment may not be connected to any telecommunications equipment forming part of any other telecommunication network, this means that BFWA connections between, or as part of, other telecommunication networks are not permitted. The implication of this is that backhaul of other networks is not permitted.
   
* 2) Paragraph 3(d) of the draft WT Act Licence provides for the revocation or variation of the licence in the event of a 'breach' of the terms of the licence. However, some parts of the Information Memorandum, notably Appendix 1 containing the draft Notice, refer to "material breach". Which is correct?
As was the case with the WT Act licences that were issued for 3G spectrum recently, the licences should refer to "material breach". However this is without prejudice to the provisions of any existing WT Act licences and should not be regarded as a precedent for any future WT Act licences.
   
* 3) Is there an absolute prohibition on BFWA operators providing services below 2Mbits/second?
Broadband services are usually considered to be those offering data rates in excess of 2 Mbits/sec. The definition of BFWA in the WT Act Licence reflects this: it includes the stipulation that data may be transmitted and received over a BFWA system at rates of at least 2 Mbits/sec on demand. This does not preclude the provision of services at lower data rates but it does mean that at any time that the end user requires services at this data rate they must be available to him.
* 4) Are there any provisions within the Wireless Telegraphy Act Licence that would affect the ability of a Parent Company to sell all the shares in a Licensee to a third party purchaser, although the licence would continue to be held by the Licensee?
Under the Wireless Telegraphy Act Licence, the Parent Company would not be prevented from selling off it's shares in the Licensee to a third party providing that the Licensee remained the same legal entity. Such a change in shareholding will of course not affect the Licensee's obligation to continue to comply with the terms of the licence, including, for example, the use it or lose it provision. Under the terms of the Telecommunications Act Licence, the Licensee would be required to notify the Secretary of State of the proposed change in shareholding.
* 5) Can BFWA be used to provide closed circuit television ("CCTV") services?
Yes, provided that:

(a) the services can be classified as the provision of BFWA services, which are defined as: "provision by means of a wireless communication system of two-way wireless communications links over which data may be transmitted and received at rates of at least 2 MBits/second on demand and whereby end-users gain access to other telecommunication systems."; and

(b) in providing the CCTV services, the Licensee complies with the terms of the WTAct Licence, particularly the interference and equipment requirements and any Telecommunications Act Licence requirements, if applicable.
* 6) Does the provision by a Licensee of wholesale BFWA services to a customer which then provides BFWA services to the end-user contribute to the Licensee's Use it or Lose it requirement?

Provided that the BFWA network is run by or on behalf of the Licensee, and that it sells wholesale capacity in accordance with the WTAct Licence and any applicable Telecommunications Act Licence.

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T Act Licence

* 1) Would a successful Bidder be under obligation to allow other operators to interconnect with it and if so, will it be able to do this on a commercial basis?
See Appendix K of the Information Memorandum in particular Condition 9 and Conditions 44-50.

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Spectrum Issues

* 1) Will operators be restricted to transmitting internet services over the "Last Mile" or could they transmit services much further?
The term "Last Mile" is commonly used to describe the connection between customer premises and the local point of access to a telecommunications network. The distance a radio signal will travel is determined by the frequency band. At 28GHz, signals typically travel up to 5kms.
   
* 2) Will operators be told of any remaining use of these bands when licences are awarded?
See Section 2.2.11 of the Information Memorandum.
   
* 3) Is the bandwidth being auctioned "clear" of fixed satellite usage?
"The inter-service FS/FSS sharing of the 27.5-29.5GHz band is detailed in sections 1.1.4, 3.2.2, 3.3.1 and Appendix E3 in volume 1 of the Information Memorandum. Currently there is no fixed satellite service usage in the frequency band.
   
* 4) Have frequency co-ordination guidelines for operators in adjacent regions been prepared?

"For UK purposes, the technical sub-group of the RA BFWA Consultative is addressing the detail of the co-ordination requirements for BFWA licence holders. This work is drawing upon the wider work being tackled by the CEPT Regulatory bodies and the European and International standards bodies. Documents BFWAtg(00)03, 12, 21,31,32,33,39, 45, 46 and 47 refer and are available from the BFWA Technical Sub-Group pages on this site."

   
* 5) Is the 28MHz guardband between operators free of all usage?
Yes.
   
* 6 ) Have either ETSI or the Radiocommunications Agency specified which of the paired frequency channel blocks should be used for downstream and upstream signals in a multipoint to point radio system.
The UK licences do not stipulate any specific sub-band for uplink or downlink nor is there any identification of specific sub-bands in the CEPT recommended channel plans for Fixed Services applied to FWA in the 28GHz band. However, spectrum engineering practice suggests that identifying specific sub bands for each direction, for systems that employ FDD techniques, is a useful means of mitigating against some of the co-ordination constraints that exist between operators.

It is noted that the current draft ERC Recommendation for use of the band 24.5-26.5GHz for FWA - BFWAtg(00)04 (copies available from Charanjit Ransi) refers to this issue in Recommends 3. This "Recommends" proposes that for FDD systems, the upper sub-band should be used for transmission from the terminal stations and the lower sub-band for transmission from the central stations. The draft ERC Recommendation is currently undergoing a consultation phase prior to adoption by WG-SE.

   
*

7a) Are there 47.5MHz guard bands above the highest frequency 112MHz blocks in both the upper and lower sub-bands?

b) Is there a guard band at the lower end of the sub-bands?"

a)No. The 47.5MHz guard band is an element of the CEPT channel arrangement (T/R 13-02) for Fixed Service use of the band 27.5-29.5GHz. The paired frequency blocks selected for BFWA are coincident with the uppermost fourteen 28MHz channels in each sub-band of the CEPT channel arrangement. Therefore the upper bound to the lower BFWA sub-band is the "112MHz centre-gap" of the CEPT channel arrangement. Appendices A3 and A4 in Volume 1 of the Information Memorandum detail the relationship between the BFWA frequency blocks and the various elements of the basic CEPT channel plan. However, the draft ERC Decision given in Appendix E3, allocates the Fixed Service centre-gap and guard bands to the FSS within Europe as a FSS "exclusive" allocation. See response b) below.

b) Guard bands are not specifically identified at the lower ends of the BFWA sub-bands. However, "Decides 10" of the draft ERC Decision given in Appendix E3 of Volume 1 of the Information Memorandum identifies a 10MHz guard band between any unco-ordinated FSS operation in any parts of the band butting up to FS operation. This guard band is assumed to be taken from the FSS allocation. However further examination of the draft ERC Decision reveals that the lower end of each BFWA sub-band is adjacent to parts of the band identified as conditional for either FS or FSS use. Further UK use of these parts of the band is currently undecided and the issue is dealt with in section 3.2.2 of the Information Memorandum.

 
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8a) What are the limitations on use of BFWA spectrum by a licensee in providing such "BFWA services" and what is meant by "BFWA services"?

b) Is it correct that a licensed operator will be able to use the BFWA Network for transmission to and reception from an end user's Customer Premises Equipment for the purposes of providing BFWA services, but that traffic can thereafter be routed onward to another operator's network?

 
a) Section 2.2.5 of the Auction Information Memorandum, entitled "Alternative uses of BFWA spectrum", states that: "Use of the BFWA Spectrum in the 28GHz band to provide other fixed services will only be permitted when such use is in direct support of the provision of BFWA services and so long as it is in line with the technical parameters and co-ordination requirements for BFWA set out in the WT Act Licence." BFWA is, as the name implies, an access technology. It provides connectivity between a consumer and a service provider. There is no general definition for a "BFWA service" as such, rather that a wide range of service content may be delivered over a BFWA system, including services originating from other telecommunications networks.

b) The limitation is that BFWA is a delivery mechanism and the services being provided must terminate at the consumer end of the BFWA connection. There is no limitation on how long the connection need be and so BFWA spectrum may, if required, be used in more than one link of the connection route. In summary, while BFWA may be used for connection of a consumer to other telecommunications networks, it may not be used for the purpose of inter-connecting other public telecommunication access networks.
* 9) Can an operator in the 28GHz band place his channel centre frequencies anywhere within his block and use any channelisation up to 28MHz?
  9) Yes, with the licensed block edge proviso detailed hereafter. The 28GHz UK Multipoint and Point to Point Interface Requirement documents state that the channel plan is in accordance with CEPT Recommendation T/R 13-02 Annex C and lists recognised channel bandwidths from that plan that are specifically identified within the relevant ETSI standards. Additionally, draft CEPT/ERC Recommendation (00) YY on use of parts of the band 27.5-29.5GHz for FWA considers "that operators may advantageously deploy equipment with a variety of central frequencies and bandwidths within their block 28MHz assignment to meet their operational needs" (a consideration supported by the Agency). It should be borne in mind that the restriction on the channel bandwidth (and specifically the maximum) is to ensure that the inter-operator co-existence measures are effective. Therefore, there is flexibility to employ any channel bandwidth up to 28MHz so long as the first channel at each end of the 2x112MHz blocks assigned to the operator are placed no closer to the block edge than the T/R 13-02 Annex C channel raster allows. In addition, the equipment will need to comply with the appropriate spectrum mask and spurious emissions requirements set out in EN 301 753.

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Regions

* 1) Which of the larger authorities come within the eleven English regions specified in Part 1 of the Schedule to the Wireless Telegraphy (Broadband Fixed Wireless Access Licences) Regulations 2000?
A list of the local authorities with unitary status for the information and guidance of potential bidders is being placed on our web site www.radio.gov.uk under "BFWA 28GHz Auction". It is intended as a helpful source of reference for companies. Whilst care has been taken to ensure the accuracy of this list, in the event of any discrepancy, the Regulations are definitive. Companies are advised to seek advice from the Agency if in any doubt.
   
* 2) Where can you obtain the latest population data for each licence area?
Relevant population information is available from the Office of National Statistics, whose website address is www.statistics.gov.uk.
 
* 3) Which of the larger authorities come within the eleven English regions specified in Part 1 of the Schedule to the Wireless Telegraphy (Broadband Fixed Wireless Access Licences) Regulations 2000?
A list of the local authorities with unitary status for the information and guidance of potential bidders is being placed on our web site. It is intended as a helpful source of reference for companies. Whilst care has been taken to ensure the accuracy of this list, in the event of any discrepancy, the Regulations are definitive. Companies are advised to seek advice from the Agency if in any doubt.
 
* 4) What is the definition of a 'Local unit'?

A local unit is defined as a physical site (eg: a shop, factory or office building), part of a business enterprise. A business enterprise may, therefore, have a number of local units (or physical sites) of different sizes having one or more employees in various geographical locations. A physical site (eg: an office building designed for multiple occupancy), may contain more than one local unit.

The licensees shall install, maintain and use the Radio Equipment in such a way as to enable the provision of services by means of the BFWA Network in a Region to at least 10% of Local Units by no later than 30 June 2002. This means that 10% of the local units are within the range of a base station.

* 5) What is the publication 'Inter-Departmental Business Register' and from where may information be obtained? Are enquiries chargeable?

The Inter-Departmental Business Register (IDBR) is a structured list of businesses operating within the United Kingdom. It is maintained by the Office for National Statistics (ONS) and comprises a statistical register of over two million businesses, representing nearly 99% of economic activity.

Data is available annually and currently data to 31 March 2000 is available. ONS estimate the data to 31 March 2001 will be available in October 2001. Charges for work done are in line with the ONS charging policy which is available on request from the address given below. ONS can provide tables showing a count of local units, employment, employees and status subset by industrial classification, region, (county level, ward level, postcode level), and employment and employee size-bands. ONS is able to complete other analyses such as enterprise (business) counts by the above variables and also turnover size-bands.

Further details on the scope of IDBR are available from the ONS website at www.statistics.gov.uk under the main heading "Commerce, energy and industry" and sub-heading "Services".

Further enquiries or requests for data from the IDBR may be e-mailed or sent to david.lewis@ons.gov.uk or claire.powell@ons.gov.uk at the Office for National Statistics, Business Registers Unit, Room 1.062, Government Buildings, Cardiff Road, Newport, South Wales NP10 8XG. (Telephone: 01633 812751, Fax 01633 812477).

 
* 6) A number of enquiries have asked questions about the extent of each of the Regions, as to which major cities and towns and districts are included. How are the Regions defined?

The descriptions of the Regions set out in the Regulations and Notice are definitive as they give an accurate listing of all the geographic areas included in each Region. However, for the information and guidance of potential Bidders, the Radiocommunications Agency has sought information from the Department for Energy, Transport and the Regions (DETR) for a breakdown of these regions at borough and authority level.

This list is being placed on the Website and is intended as a helpful reference for companies. While care has been taken to ensure the accuracy of this material, in the event of any discrepancy the Notice and Regulations are definitive and companies are advised to seek advice from the Agency if in any doubt.

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The Auction - General

* 1) Where is the Radiocommunications Agency located?
The Radiocommunications Agency is situated at 189 Marsh Wall, London, E14 9SX (Click here for map).
   
* 2) Does the Broadcasting Act apply to BFWA?
Not specifically. There may be, in general, two likely circumstances when Broadcasting Act Licences may be required by BFWA operators or by persons whose services are conveyed by BFWA operators for example:

(i) where there is conveyance of a service consisting in the provision of relevant television or sound programmes (see the Broadcasting Act 1990 Sections 46 and 113); and/or

(ii) where there is delivery of one or more television programme services for simultaneous reception in two or more dwelling-houses (see the Broadcasting Act 1990 Section 72)
* 3) What is the maximum bandwidth for local loop and how much will access cost?
Unbundled local loops will be presented as a baseband analogue circuit. The maximum data rate that can thus be achieved will depend on the type of equipment deployed and the characteristics of the individual loop (the construction of the access network leads to a large diversity in individual loop characteristics). In the UK with ADSL technology it is expected that about 80-85% of loops will support 2Mbit/s (downstream) but higher data rates can be supported on certain loops. OFTEL published a statement entitled " Access to bandwidth: Conclusions on charging principles and further indicative charges" in August. The document can be found on OFTEL's website at www.oftel.gov.uk/new.htm#Publications.
   
* 4) Has OFTEL's review of Leased Lines been released yet?
OFTEL issued the document on 29 August 2000 and can be found on their website at www.oftel.gov.uk/new.htm#Publications.
   
* 5) Is the PTO Licence fee £12,500 per region?
The initial PTO licence fee is £12,500 for a regional and £40,000 for a national. There will be an annual renewal fee thereafter.
   
* 6) Why are prospective bidders asked to register their interest at an early stage? Does this imply any particular commitment or obligation for the enquirer?
The Radiocommunications Agency and its advisers have made their own estimates for the likely numbers of participants in an auction and are making preparations accordingly. It will be helpful for confirming the planning of physical and IT resources, for any indicator that the orders of magnitude are correct. This is entirely without obligation or commitment, and the enquirers' confidences will be respected.
   
* 7) Can companies from outside the UK participate in the Auction?
Any body corporate may make an Application in accordance with Part 2 of the Notice. An applicant does not therefore need to be resident in the UK, but should note the requirement of paragraph 4.2.3 of the Notice to provide an address within 10 kilometres of the Auction Location.
   
* 8) Please clarify the requirement for a bidder to have premises within 10km of the auction location, as stated in paragraph 4.2.3 of the Notice.
The bidder may operate from any premises of his choice, without any limitation on distance from the auction location. However, in the event of an unforeseen emergency such as a major telecommunications, power or other failure (however unlikely) which might disrupt the business of the auction, there must be a notified address within 10km of the auction location to which the auctioneer could deliver a communication manually.
   
* 9) Is it possible to bid for one single region?
A bidder may bid for a licence in one or more of the fourteen licence regions but he may only bid for a single licence in each region.
   
* 10) Is there a mechanism by which a Bidder may ask questions of the Agency after the Application Date?
Yes. Questions should continue to be sent in accordance with section 6.1 of the Information Memorandum.
   
* 11) Will the mock auctions take place in the first or second week in October?
The Mock Auctions are likely to be held in early October but we are not yet in a position to give precise dates.
   
* 12) Will there be some sort of session where the auction participants can practice with the auction tools?
Section 4.4.7 of the Information Memorandum covers trialing.
   
* 13) Paragraph 4.3.9 of the Notice specifies that at the end of the final round no Bidder has any eligibility points remaining. If a Bidder’s activity level is the sum of the number of licences on which he is the highest Bidder plus the number of licences on which he makes a bid plus the number of waivers he notifies, how can the requirement in paragraph 4.3.9 be satisfied?
The Final Round shall be the Round at the end of which no bids or waivers have been notified and no Bidder has any Bidder Eligibility Points remaining other than those comprising Current Price bids.
 
* 14) Will the Auction start on 16 October as set out in the illustrative timetable in the Information Memorandum?
No. The start date is now expected to be towards the end of October. Bidders will receive 10 Business Days Notice of the start date and a Press Release or Statement will be made at that time in accordance with the provisions of paragraph 4.2.1 of the Notice.
 
* 15) Is a Bidder committed only to the Regions in which he first bids?
Any Bidder which holds a Current Price Bid on any Licence is committed to that Licence and, if not overbid by another Bidder, wins that Licence at the end of the Auction. If, however, that Bidder is subsequently overbid and is thus no longer holding the highest bid for that licence then the Bidder has the freedom either to cease bidding for the original licence and bid for a different licence in the Region, or alternatively to use his Bidder Eligibility Points against any licences in any other Regions, subject to the maximum permitted by the total of his Bidder Eligibility Points and subject to the proviso that a Bidder may not bid for more than one licence in a Region in any one Round.
 
16) Are the results of every round posted onto the public website at the end of each round or each day?
The auction results will be available on the public website 15 minutes after each round.
 
17) What impact will the independent review of spectrum management, announced in the Pre Budget Review on 8 November, have on the 28 GHz Broadband Fixed Wireless Access Auction?
The review will not impact on the running of the Auction. The Auction will start on 10 November and proceed as planned. (See What's New on the Agency website for 9 November for a statement on the review.)
 
18) What do the Government plan to do with the unsold licences at the end of the Auction?
It is clear from the number of credits remaining that some licences will remain unsold at the end of the Auction. The Secretary of State may review the position regarding unsold spectrum at some future date, subject to ensuring that the outcome of the Auction is not prejudiced. Should it be decided, following any such review, to grant licences in respect of such unsold spectrum the award process would be consistent with the EC Licensing Directive, and in particular Article 10.3 thereof which requires that licences are granted on the basis of selection criteria that must be objective, non-discriminatory, detailed, transparent and proportionate.

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Mock Auction

* 1) When will the Mock Auction be held
The Mock Auctions will begin shortly after Bidders have received notification of the Auction Date.

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Auction Software

* 1) What type of software will be needed to participate in the auction?
No specific software is required beyond that referred to in Section 4.4.9 of the Information Memorandum.
   
* 2) Can you confirm the recommended ISDN terminal adapters and connection?
Bidders will require one of the following ISDN adapters: Diva, BT or Multitech. Bidders will be informed of the line configuration after the Pre-Qualification Stage.
   
* 3) What type of security will be used for the Auction software?
The Auction System has been designed and developed to meet the security requirements of ITSEC Level E2. The system has been further enhanced by the addition of 128 bit data encryption across all ISDN connections.

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Application/Pre-Qualification Stage

* 1) Where is the application form to be found?
The application form will be appendix 1 to the Auction Notice. For reference, the draft Notice (including the draft application form) is contained in volume 2 of the Information Memorandum, published both in hard copy and on the Agency Website. The Auction Notice is being finalised and will issue shortly, however it is not envisaged that the application form will be changed significantly, if at all.
   
* 2) Does the Application Form need to be signed?
No but signatures are required on the "Bidder compliance Certificate" and the "Bidder Association Certificate" in Appendix 2, part B and Appendix 3 respectively of the Application Form.
   
* 3) Is it possible for a sole company to apply on 5 September 2000 for some regions and then join into a consortium with someone else?
See Section 4.2.5 of the Information Memorandum which covers changes to candidate groups.
   
* 4) What documents do you require to support your application form?
The documents are itemised under section 4 of the Application Form, which is Appendix 1 of the "Notice".
   
* 5) When will the Agency let the public know who applied on 5 September?
The Agency will issue a press release soon after applications have been received.
   
* 6) How long after the Pre-qualification Stage will the Agency announce the successful applicants?
The Agency expects to be able to make an announcement around the end of September.
   
* 7) If an applicants Candidate Group is too large for it to be practical to show it in diagrammatic form in section 2.1 of the Application Form, how should details of the Bidder's Candidate Group be given in the Application?
Where this is the case those members of a Candidate Group who have a controlling interest in the Bidder should be shown in diagrammatic form in section 2.1 but the other members of the Candidate Group need not be. All Relevant Members of the Candidate Group (as defined in the Notice) should also be shown in diagrammatic form in section 2.1. All members of the Candidate Group not shown in diagrammatic form in the Application must be listed separately in an Annex to the Application, and their position in the Candidate Group in relation to the other companies in the Group made clear. In listing members of the Candidate Group in an Annex it is sufficient to state by whom they are controlled but it is not necessary to list the specific percentage shareholding.
   
* 8) Do Bidders need to provide details of the Capital Structure (section 1.7 of Application Form) of their Candidate Group?
Only the details of the Bidder's Capital Structure need be provide.
   
* 9) Does a Bidder's Holding Company form part of an Applicant's Candidate Group?
Yes. The definition of "Candidate Group" as set out in the Notice means "any person who is a Connected Person" to that Bidder. Again, according to the definitions set out in the Notice, "Connected Person" is one who All persons who control, or are controlled by, a person falling within (a) (b) or (c) of the definition of "Connected Person" within the "Notice" are deemed to be Connected Persons and hence members of the Candidate Group.
   
* 10) In section 2.1 of the Application Form how does a Bidder show in diagrammatic terms the relationship between the ultimate parent company and the Bidder in a group where the ultimate parent company controls a subsidiary which in turn controls the Bidder?
This would come under "other forms of control or influence" in section 2.1 and the diagram would need to include a rectangular shape for the ultimate parent company linked by double dotted lines to the oval shape for the Bidder with illustrative text or explanatory footnotes indicating the method of control. The direct relationship between the Bidder and its immediate holding company would be shown in accordance with the second diagram set out in section 2.1 of the Form.
   
* 11) What is the latest date when a bidder can make a change to his Candidate Group?
Section 4.2.5 of the Information Memorandum and section 3 of Part 6 "Activity rules" of the Notice cover changes to Candidate Groups.
   
* 12) In section 2.1 of the Application Form "Each shape should contain the name of the person that it represents" - is the "person" an individual within a company?
No. The name of a company is required.
   
* 13) Do all shareholders for a "Private Company" have to be listed in the Application Form?
Yes. Bidders must provide all the necessary details in accordance with paragraph 1.7 of the Application Form.
   
* 14) Would any change in the percentage of shares held by existing shareholders of a Bidder after the application date but before the award of any licence, breach the provisions of section 6.3.2?
No. But if the change affects the information submitted in the Bidder's Application Form (see section 6.3.5 of the Notice) then the Bidder should notify Secretary of State immediately.
   
* 15) Can a Consortium set up by, for example, 14 companies make 14 separate applications (one for each of the regions) for the auction?
Yes. The Consortium can bid for 14 licences but then any licences that the Consortium successfully bid for would be granted in the name of the Consortium and not in the name of any of its 14 companies. See section 3.6.9 of the Notice.
   
* 16) Do all mutual directorships within the Bidder's Candidate Group need to be shown in paragraph 2.1 of the Application Form?
Yes, if the mutual directors have met the criteria for being part of the Candidate Group.
   
* 17) Is the "ultimate parent company" the highest company in the chain of corporate ownership? Do reports and accounts for such companies only have to be provided if such companies fall within the Candidate Group?
Yes to both questions
   
* 18a) In the following scenario could Company A bid in all Regions other than the Relevant Region, while Company B bids in the Relevant Region? Company A owns 50% of the shares in Company B, which trades exclusively in one Region (the Relevant Region). Company A is bidding for licences in several Regions, but has no operations in the Relevant Region. Company B wishes instead to bid in its own name for a licence in the Relevant Region.
No. Company A is a Connected Person to Company B which means that they form part of the Candidate Group. As stated in Section 3.3.2 of the Notice, a Bidder is only a qualified Bidder if such Bidder is not a Candidate (that is, a member of the Candidate Group of a Bidder) in relation to another Bidder.
   
* 18b) If not, could the applicable system be run by Company A the successful Bidder in all the regions but Company B provides the provision of services to Company A's customers in the relevant regions?
Yes.
   
* 19) A question has been raised as to whether bidders who do not have a trade as such would still be able to qualify for the tax relief provided by Section 87 and Schedule 23 to the Finance Act 2000. The concern is that if the receipts from exploiting the licence are considered to be chargeable to tax under Case III of Schedule D, there are no allowable deductions to be set against them.
Where a successful Bidder runs an applicable system a second company may provide services on that system provided that such services are offered only to customers of the successful Bidder (see Question 18(b)). A situation should not, therefore, arise where a successful Bidder does not trade since the successful Bidder will be the company required, under the terms of the Wireless Telegraphy licence, to run the network.
   
* 20) Can a Bidder increase or decrease their Eligibility Points prior to notification of the Auction Date?
The only provision for changing a Bidder's Application is set out under section 3.2.3 of the Notice which only relates to the changes to the Candidate Group.
   
* 21) When will the mock auctions take place?