FAQs: 3.4/3.7 GHz bands allocation process

When will the 3.4/3.7 GHz band allocation process commence?

The 3.4/3.7 GHz band allocation process is currently scheduled to commence in October 2023.

As with previous auctions, we will give more details to all bidders on the auction schedule as part of the applicant consultation. We plan to consult in the first week of September. Among other matters, we will seek views on:

• the start date, start time and duration of the pre-bidding round of the primary stage of the 3.7 GHz auction
• the start date and start time of the first clock round of the primary stage of the 3.7 GHz auction.

Under subsection 76(2) of the Radiocommunications (Spectrum Licence Allocation—3.4/3.7 GHz Bands) Determination 2023, the auction manager will provide all bidders with at least 10 working days notice in writing of the following information:

• the start date, start time and duration of the pre-bidding round of the primary stage of the 3.7 GHz auction
• the start date and start time of the first clock round of the primary stage of the 3.7 GHz auction.

Training and mock auctions are expected to be held late September to mid-October 2023 to familiarise registered bidders with the auction system. Please see section 3.5.2 of the auction guide for more information.

 

What matters will be included in the applicant consultation? 

In addition to the matters listed in the previous FAQ, in the first week of September we will consult applicants on:

• the bid increment percentages for the primary stages and secondary stages of the 3.7 GHz and 3.4 GHz auctions
• the eligibility requirement percentage for the primary stages
• proposed schedules for all auction stages
• preferred dates and configurations for mock auctions
• arrangements for over the Christmas/new year period.

 

What information is required as part of an application?

An interested party must, before the application deadline on 31 July 2023, pay the application fee and give the ACMA:

• a completed application form (Form 1)
• a deed of acknowledgement executed by the applicant (Form 2)
• a deed of confidentiality executed by the applicant (Form 3)
• information about its associates (Form 4 and/or Form 5)

 

When completing the application forms (such as a deed), which address should I use?

You should use the address of your most attended office – or home office if you exclusively work from home – to support identification.

 

When can an applicant change the information provided to the ACMA regarding nominated contact persons and authorised persons?

An applicant may update their application form (including information regarding nominated contact persons and authorised persons) at any time until the application deadline (2pm, 31 July 2023). Under subsection 34(3) of the Radiocommunications (Spectrum Licence Allocation—3.4/3.7 GHz Bands) Determination 2023 (the allocation determination), application documents can't be changed after the application deadline.

After the eligibility deadline (2pm, 12 September 2023), we will notify each bidder in writing that they have been registered. We will provide a copy of the information recorded on the register (including information regarding nominated contact persons and authorised persons) under subsection 54(3) of the allocation determination. Under subsection 55(4), if a bidder notifies us of a change in this information, we must correct the register as soon as possible.

 

Will Deeds of Confidentiality already executed prior to the update on 17 July 2023 be accepted?

Yes. The update corrected a minor typographical error that does not have a significant impact on the operation of the Deed. Any new persons signing the Deed should sign the updated version. Please see the notice published on the ACMA website for more information.

 

Can individual Deeds of Confidentiality (Form 3) be submitted after the application deadline (2pm, 31 July 2023)?

Yes. Only the Deed of Confidentiality for the applicant must be submitted before the application deadline. Deeds submitted by individuals (as related persons to or contractors of the applicant) can be submitted later.

 

Are applicants required to send the ACMA paper copies of forms?

Only the Deed of Financial Security (Form 8) needs to be provided in paper form.

 

Can the Deed of Financial Security (Form 8) be in a form other than that provided by the ACMA (for example, in a bank form with similar text)? 

No. The Deed of Financial Security (Form 8) must be in the form that the ACMA has published. 

 

When can applicants submit a statutory declaration about affiliations (Form 6)?

Applicants may submit their Form 6 at any point before the deadline – 5 pm (AEST), Tuesday 15 August 2023.

Please note that the associates form (Form 4) can be updated at any time during the allocation period. If any associates forms are updated, we will share this information with all applicants. 

Also note the ongoing restriction on affiliations between bidders during the allocation period, and the obligation to report any affiliation to the ACMA, as outlined in sections 66 and 67 of the allocation determination.

 

What is the ACMA’s firewall limit?

10 MB. You will need to keep this in mind if sending documents to us via email.

 

Will the ACMA run a workshop on the auction methodology?

We plan to provide a half-day training workshop for all registered bidders after the eligibility deadline. We are also planning to offer each registered bidder a half-hour training workshop prior to the first mock auction. These will be conducted by Power Auctions, the ACMA’s auction system provider. We will provide bidders with user guides for the auction system as soon as possible after the application deadline.

 

During the mock auctions, should bidding teams bid as their company, or should they anticipate what other companies may bid?

Bidders may configure their teams for the mock auctions as they choose, and bidders may bid as they choose during the mock auctions.

 

What has the ACMA done on the coexistence with radio altimeters? 
To manage the coexistence of WBB/5G with aircraft radio altimeters, we have put in place ongoing and interim mitigations on new WBB deployments above 3.7 GHz in the band until 31 March 2026. This will allow the timely rollout of 5G services while providing time for the aviation sector to improve radio altimeter performance.

You can find more information on our mitigation measures on our 5G and aviation services in Australia page.

 

Do the HCIS identifiers for the 3.7–3.75 GHz frequency range match the lot configuration maps in the marketing plan?

The map for the 3700–3750 MHz lot configuration in Schedule 4 to the Radiocommunications Spectrum Marketing Plan (3.4/3.7 GHz Bands) 2023 – otherwise referred to as the marketing plan – is slightly incorrect. A correct version of the map is below:

 

Please note: as with the maps in Schedule 4 to the marketing plan, this map is an indicative pictorial representation of each region approximating the regions represented by the HCIS identifiers.

You should rely on the HCIS identifiers in the marketing plan for the regions applicable to each product available in the 3.4/3.7 GHz bands allocation process. HCIS identifiers can be converted to a Placemark file on the ACMA website.

 

Will the allocation limits calculation tool be updated to reflect the 160 MHz regional limit?

The allocation limits calculation tool (released with the draft instruments) can be updated to reflect the 160 MHz regional limit by using the drop-down menu at cell C8 in the NBN, Optus, Telstra, TPG or new licensee worksheets, as appropriate. This allows you to see the amount of spectrum anyone can obtain, including existing licensees, under the allocation limits at subsection 12(3) in the allocation determination.

 

In the allocation limits calculation tool, should the HCIS for ESPZ Quirindi W and Rural NSW Mount Seaview be included in the ‘Rural South/West NSW’ region or the ‘Rural North NSW/South QLD’ region?

There is an error in the allocation limits calculation tool. The HCIS for ESPZ Quirindi W and Rural NSW Mount Seaview should be included in the Rural North NSW/South QLD region. The ‘Regions’ and ‘3.4–3.8 Map’ tabs should be updated as follows:

• Rural South/West NSW region: Rural NSW W sub-area only.
• Rural North NSW/South QLD region: Rural North NSW/South QLD, Rural NSW Mount Seaview and ESPZ Quirindi W sub-areas.

Neither of these regions should include the NSW/ACT Urban Fringe sub-area.

As a result, in the ‘Products’ worksheet of the allocation limits calculation tool:

• The population for Rural North NSW/South QLD Lower and Middle should increase from 599,423 to 614,234. 
• The population for Rural South/West NSW Lower and Middle should decrease from 371,046 to 356,235.

And, in 'Column AG' of all calculation spreadsheets (that is NBN, Optus, Telstra, TPG and New Licensee):

• Rows 13 and 14 should be corrected from ‘Rural SW NSW Lower’ to ‘Rural N NSW & S QLD Lower’.
• Rows 45 and 46 should be corrected from ‘Rural SW NSW Middle’ to ‘Rural N NSW & S QLD Middle’.

Please note that while resolutions to errors brought to our attention are published on this FAQ page, the ACMA has not updated the allocation limits calculation tool. It is not intended to be a ‘live’ tool.

 

In the allocation limits calculation tool, are 3.7 GHz winnings encompassing the ‘ACT West’, ‘ACT South’ and ‘Melbourne Outer SW’ sub-areas double-counted?

Any input in the 3.7 GHz expressible demand tables (Table 2 of all calculation spreadsheets) encompassing the 2 sub-areas in Canberra Upper (ACT West and ACT South) and one sub-area in Melbourne Upper (Melbourne Outer SW) are double-counted. To correct this, remove one instance of ‘Canberra Upper’ and ‘Melbourne Upper’ from column AK of the relevant calculation spreadsheet, as appropriate. This issue does not change any existing holdings calculations for the 3.4 GHz auction due to the small populations of the overlap areas.

As stated above, while resolutions to errors brought to our attention are published on the FAQ page, we have not updated the allocation limits calculation tool, as it is not intended to be a ‘live’ tool.

 

What is the impact of the trades of spectrum licences between Optus and NBN Co on the allocation limits for the existing licensees in the allocation limits calculation tool?

Based on the information in the Register of Radiocommunications Licences (RRL) (licence numbers 11286128, 11286125 and 11286124), and the provisions relating to allocation limits in Part 2 Division 2 of the Radiocommunications (Spectrum Licence Allocation—3.4/3.7 GHz Bands) Determination 2023, the trades will affect the unused allocation limits as follows:

In the Perth Upper product:

• NBN Co’s unused allocation limit increases from 62.5 MHz to 65 MHz. 
• Optus’s unused allocation limit decreases from 75 MHz to 72.5 MHz.

In the Rural North NSW/South QLD and Regional QLD products:

• NBN Co’s unused allocation limit decreases from 20 MHz to 17.5 MHz across the group of products.
• Optus’s unused allocation limit increases from 122.5 MHz to 125 MHz.

In the Rural South / West NSW and Regional NSW products:

• NBN Co’s unused allocation limit remains at 0 MHz, because its existing holdings increase from 171.5 MHz to 175 MHz, which exceeds the 160 MHz allocation limit.
• Optus’s unused allocation limit increases from 126.5 MHz to 130 MHz.

While the ACMA has published an allocation limits calculation tool as part of our consultation on the allocation instruments for this process, this tool has not been updated. We encourage interested parties and applicants to make their own inquiries based on the information available in the RRL.

 

Will the ACMA release an eligibility calculation tool?

We do not plan to release an eligibility calculation tool. Please see the eligibility nomination form (Form 9 as part of the applicant information package) for more information on how to calculate your eligibility points. Additionally, in accordance with section 79 of the Radiocommunications (Spectrum Licence Allocation—3.4/3.7 GHz Bands) Determination 2023, the ACMA will notify bidders about their eligibility points when the 3.7 GHz band auction is complete.

 

Does the dollar value of eligibility points equal the ratio of the starting price to the lot ratings?

No. The value of $37.60 per eligibility point was calculated to reflect 10% of a bidder’s potential start demand for the purposes of its eligibility payment or deed of financial security. The total value of a bidder’s eligibility points will not equal the ratio of the starting prices to the lot ratings. The $37.60 value is an average across all products rather than an exact amount for each product.

The lot ratings are intended to reflect this value but are adjusted to facilitate easier demand switching between products for bidders.

 

What happens if the eligibility points secured by a bidder in the eligibility nomination form (Form 9) are too high or low?

Eligibility points secured by a bidder in the eligibility nomination form cannot be changed after the eligibility deadline. A bidder should choose the number of eligibility points based on its bidding strategy. If the points secured are an over-estimate, the bidder may choose lower demand in the pre-bidding round of the primary stage. If the points secured are an under-estimate, the bidder cannot increase its demand above the number of eligibility points secured in the form. 

 

Did the ACMA proceed with the proposed collusion affirmation?

We did not proceed with the proposed collusion affirmation. After considering submissions to the May consultation and further ACMA analysis, we believe existing protections against collusive behaviour are robust without the need for additional affirmation. You can find more information and a summary of the consultation submissions on pages 33–34 of the outcomes paper (found in the key documents section).

 

What transfer label do we need to use for the eligibility payment and application fee?

If applying via the auction application portal, an invoice will be generated for you to download. That invoice will contain information on how to pay, including an appropriate transfer label.

If applying via mail or email, the forms provide the appropriate transfer label. We have noted that there is a discrepancy in the payment transfer labels between forms 1 and 9 and the applicant information pack.

Generally, we would prefer the application fee transfer label to be identical to form 1 and reflect the description: ‘3437 fee [name of applicant]’

For the eligibility payment, we would prefer the transfer label to be identical to form 9 and read as ‘3437 elig [name of applicant]’

However, we will still accept the transfer labels in both the application forms and the applicant information pack.

 

Will the ACMA make the auction files and format available to applicants?

We intend to release the auction system bidder user manual and download files format information to applicants in the first week of September, together with the applicant consultation. This will ensure the auction system has passed all necessary testing and implementation milestones before we release these documents.

 

What are the minimum system specifications required to access the auction system?

Please refer to section 2.1 of the auction system user manual, which has been provided to bidders. Please note there is a different auction system in place for this auction (and therefore different software), so the specifications are different for this auction.

Can bidders participate in the allocation process from outside of Australia?

Bidders will be able to access the bidding software from overseas. Any authorised persons bidding from overseas should ensure they have a reliable internet connection and that their device meets the minimum requirements specified in section 4.1.2 of the auction guide.

Bidders participating from overseas may wish to note that auction rounds may only take place between 9 am and 5 pm AEDT time on working days.

Please note the residency requirements for the commercial use of spectrum licences under the Radiocommunications Act 1992.

 

Why are all contiguous frequency range options presented to bidders in the assignment stage, rather than only feasible options?

We addressed our reasoning for the inclusion of all contiguous frequency range options in the assignment stage on pages 18–19 of the outcomes paper for the allocation and technical instruments for the 3.4/3.7 GHz bands allocation process:

'In relation to providing bidders with only the feasible assignment options, auctions in Canada and the US involve the provision of all contiguous frequency range options, rather than only winnable or feasible options. This is because showing only feasible options reveals information about the lots allocated to other winning bidders, which can be used by bidders to ‘game’ the assignment stage. We are conscious that showing all contiguous options will impose costs on bidders because they will have to develop bids on options that are not feasible. However, given the gaming risk associated with displaying only feasible assignment options, we consider it is worthwhile to display all contiguous options. On that basis, no change was made to the allocation determination.'

For example, if there are 2 primary/secondary winners for Albury Lower (5 lots available) – bidder A wins 2 lots and bidder B wins 3 lots. There are only 2 feasible frequency range options: AABBB or BBBAA. However, presenting only these 2 options reveals to both bidders that there is only one other bidder. As a result, they may base their bids on defeating their competitor’s valuation rather than on their own valuations. The auction system will present the following options to those bidders, which will encourage them to bid based on their own valuations:

Bidder A: lots 1–2; 2–3; 3–4; 4–5

Bidder B: lots 1–2–3; 2–3–4; 3–4–5.

When will spectrum licences commence and expire?

Spectrum licences issued to winning bidders in the 3.7 GHz band will be for a duration of 20 years. This will commence either 8 weeks after the auction results are published, or when the licence is issued; whichever is later.

Spectrum licences issued to winning bidders after the 3.4 GHz auction will be for a duration of 7 years, commencing shortly after the auction results are announced and the licence is issued.

 

When will Deeds of Financial Security (Form 8) be cancelled after the auction?

Deeds of Financial Security will be cancelled within 6 months of the conclusion of the auction. 

While the allocation determination and Deed do not specify a time frame, we would seek to align cancellations with the 6 month timeframe required for refunds of eligibility payments. This timeframe allows the ACMA to resolve any issues related to potential breaches of auction rules.