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{"sheet":"Contents","index":0,"n_rows":34,"n_cols":6,"rows_kept":34,"cut":false,"hidden":false,"merged":[[31,0,31,5],[33,0,33,5],[24,0,24,5],[25,0,25,5],[26,0,26,5],[28,0,28,5],[29,0,29,5]]}
[]
[null,null,null,null,null,{"$f":"Workbook.Title","v":"ALF Calculation"}]
[]
["Information"]
[]
["Title ","ALF Calculation"]
["Project case code"]
["Objective","Calculate ALF for 900 MHz and 1800 MHz taking lump sum value as an input"]
["Version","Version 1"]
["Status","Approved for release"]
[]
["Confidentiality status","No confidential data"]
["Release date","Semptember 2013 "]
[]
["Contents"]
[]
["Sheet","Description",null,"Status","Notes"]
["Contents","This contents sheet",null,"Approved for release"]
["Style Guidelines","A guide to the styles used in this workbook",null,"Approved for release"]
["ALF Calculation","Calculation of ALF from lump sum value, including adjustment for tax",null,"Approved for release"]
[]
[]
["Terms and conditions"]
[]
["The terms and conditions on which OFCOM is making available the model are set out below.                                      "]
["                                                "]
["The ALF Calculation model has been created solely for the purpose of deriving revised ALF for 900 MHz and 1800 MHz spectrum, taking lump sum value as an input, according to the methodology described in Section 5 of the Consultation Document. It also provides an illustrative example of how we propose to adjust the level of ALF in the first year to reflect the common implementation date."]
[]
["All right, title and interest in the provided model (the ‘Model’) are owned by OFCOM. Such title and interest is protected by United Kingdom intellectual property laws and international treaty provisions. While you may freely use the Model for the purposes for which it is provided, as set out in the accompanying model documentation, it is not to be modified in any way or used for commercial gain or otherwise without the prior written permission of OFCOM.                                                                                   "]
["No representation or warranty is given as to the accuracy, completeness or correctness of the provided Model and it is provided 'as is'. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.                                        "]
["                                                "]
["OFCOM does not accept any responsibility for any loss, disruption or damage to your data or your computer system which may occur whilst using the Model or material derived from the Model. OFCOM does not warrant that the functions contained in the Model will be uninterrupted or error free. Also, OFCOM does not warrant that defects will be corrected, or that the Model provided is free of viruses. "]
["                                                "]
["In no event will OFCOM be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damages whatsoever arising from use or loss of use of, data or profits arising out of or in connection with the use or otherwise of the provided Model. By using this Model, you agree to the above.                                           "]

{"sheet":"Style Guidelines","index":1,"n_rows":38,"n_cols":8,"rows_kept":38,"cut":false,"hidden":false,"merged":[]}
[]
[null,null,null,null,null,null,null,"Style Guidelines"]
["NB Use Window Unfreeze Panes (on each worksheet) to have row 1 scroll with the rest of the worksheet"]
[]
["Styles"]
[]
[]
[null,"Input",100,null,"An input to the model that it is expected the user will change (change at will)"]
[]
[null,"Output",100,null,"A key result from this part of the model (in particular one that will be used elsewhere in the model)"]
[]
[null,"Highlight",100,null,"A cell that is highlighted for uncertainty"]
[]
[null,"Note or Source","Note",null,"A note (NB smaller than standard font size)"]
[]
[null,"Un-format",null,null,"Going back to default Excel formatting"]
[]
[null,"Advanced user styles"]
[]
[null,"Input assumption",100,null,"An input to the model that it is expected the user will change (change at will)"]
[]
[null,"Input Data",100,null,"A piece of real data (only change if you have better data)"]
[]
[null,"Checksum",0,null,"A side calculation intended solely to cross check a result (and which therefore should not be referenced anywhere else in the model)"]
[]
[null,"Note ","Note",null,"A note (NB smaller than standard font size)"]
[]
[null,"Source","Source",null,"A source"]
[]
[null,"Named range","Name",null,"An Excel Name applying to one or more adjacent cells (use Insert Name Create to actually create the Excel Names)"]
[]
[null,"H1","Title",null,"Heading level 1"]
[]
[null,"H2","Title",null,"Heading level 2"]
[]
[null,"H3","Title",null,"Heading level 3"]
[]
[null,"H4","Title",null,"Heading level 4"]

{"sheet":"ALF calculation","index":2,"n_rows":46,"n_cols":22,"rows_kept":46,"cut":false,"hidden":false,"merged":[]}
["Calculation of annual licence fees for 900 MHz and 1800 MHz",null,null,null,null,null,null,null,null,null,null," "]
[]
["Input assumptions"]
[null,null,"2013/14","2014/15","2015/16","2016/17","2017/18","2018/19","2019/20","2020/21","2021/22","2022/23","2023/24","2024/25","2025/26","2026/27","2027/28","2028/29","2029/30","2030/31","2031/32","2032/33"]
["Real post tax cost of capital",4.2000000000000003E-2]
["Main corporate tax rate",null,0.23,0.21,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2,0.2]
["Duration of ALF calculation of 20 years ",20]
["Annual inflation assumption",2.5000000000000001E-2]
["Inflation index",null,1,{"$f":"C9*(1+$B$8)","v":1.0249999999999999},1.0506249999999999,1.0768906249999999,1.1038128906249998,1.1314082128906247,1.1596934182128902,1.1886857536682123,1.2184028975099175,1.2488629699476652,1.2800845441963566,1.3120866578012655,1.3448888242462971,1.3785110448524545,1.4129738209737657,1.4482981664981096,1.4845056206605622,1.5216182611770761,1.5596587177065029,1.5986501856491653]
[]
["Lump sum value for 900 MHz in £m per MHz ",25]
["Lump sum value for 1800 MHz in £m per MHz ",15]
[]
["All in real terms. Payments assumed to occur at the beginning of the year."]
[]
[]
["Run macro to calculate Tax Adjustment Factor if necessary"]
[]
[{"$f":"IF(ROUND(Check_TAF,5)=0,\"Currently no need to run macro\",\"NEED TO RUN MACRO\")","v":"Currently no need to run macro"}]
[]
[]
["This macro iteratively calculates the Tax Adjustment Factor, which reflect the more advantageous tax treatment of ALF compared to lump sum payments."]
["The macro hard codes the ALF figure assumed in the calculation of the tax adjustment factor for 2013/14."]
[]
["Calculation of Tax Adjustment Factor"]
[null,"PV","2013/14","2014/15","2015/16","2016/17","2017/18","2018/19","2019/20","2020/21","2021/22","2022/23","2023/24","2024/25","2025/26","2026/27","2027/28","2028/29","2029/30","2030/31","2031/32","2032/33"]
["Lump sum assumed for tax adjustment factor calculation",100]
["Lump sum value amortised (falls over time with inflation)",{"$f":"NPV($B$5,D28:V28)+C28","v":57.442359098704912},{"$f":"($B$27/$B$7)/C$9","v":5},4.8780487804878057,4.7590719809637125,4.6429970545987436,4.5297532239987754,4.4192714380475859,4.3114843298025232,4.2063261754170966,4.1037328540654601,4.0036418088443524,3.9059920086286368,3.8107239108572064,3.7177794252265435,3.6271018782697984,3.5386359787998036,3.4523277841949311,3.3681246675072498,3.2859752853729272,3.2058295467052953,3.1276385821515076]
["Tax benefits of amortisation of lump sum payment",{"$f":"NPV($B$5,D29:V29)+C29","v":11.685286107461598},{"$f":"C28*C$6","v":1.1500000000000001},1.024390243902439,0.95181439619274255,0.92859941091974874,0.90595064479975518,0.88385428760951723,0.8622968659605047,0.84126523508341933,0.8207465708130921,0.80072836176887052,0.78119840172572741,0.76214478217144133,0.74355588504530878,0.72542037565395967,0.70772719575996079,0.69046555683898625,0.67362493350145003,0.65719505707458548,0.6411659093410591,0.62552771643030158]
[]
[{"$f":"A27","v":"Lump sum assumed for tax adjustment factor calculation"},{"$f":"B27","v":100}]
["Tax benefits for annual licence fees",{"$f":"NPV($B$5,D32:V32)+C32","v":22.472793312944383},{"$f":"C34*C$6","v":1.8313826952750609},1.6721320261207075,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311,1.5925066915435311]
["less Tax benefits of amortisation of lump sum payment",{"$f":"-B29","v":-11.685286107461598}]
["Annual licence fee ",{"$f":"NPV($B$5,D34:V34)+C34","v":110.78750720548283},7.9625334577176554,{"$f":"ALF_for_TAF_calc","v":7.9625334577176554},7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554,7.9625334577176554]
["Tax Adjustment Factor",{"$f":"1+(B32+B33)/B31","v":1.1078750720548278}]
["Check=0",{"$f":"SUM(B31:B33)-B34","v":0}]
[]
["Implied ALF"]
[]
["ALF for 900 MHz in £m per MHz using formula in consultation",null,{"$f":"Lump_Sum_900*TAF*$B$5/(1-(1+$B$5)^-20)*(1/(1+$B$5))","v":1.9906333644294105}]
["Check=0",null,{"$f":"PMT($B$5,$B$7,-Lump_Sum_900*TAF,,1)-C40","v":0}]
["ALF for 900 MHz in £m per MHz, rounded to two decimal places",null,{"$f":"ROUND(C40,2)","v":1.99}]
[]
["ALF for 1800 MHz in £m per MHz using formula in consultation",null,{"$f":"Lump_Sum_1800*TAF*$B$5/(1-(1+$B$5)^-20)*(1/(1+$B$5))","v":1.1943800186576463}]
["Check=0",null,{"$f":"PMT($B$5,$B$7,-Lump_Sum_1800*TAF,,1)-C44","v":0}]
["ALF for 900 MHz in £m per MHz, rounded to two decimal places",null,{"$f":"ROUND(C44,2)","v":1.19}]