Conclusion: Averaging process

The averaging process is summarised in the table below:

	Auctioned or Tendered Licence (No changes to coverage area)	Auctioned or Tendered Licence (Changed coverage area)	Grandfathered Licences
1	Each licence is allocated to an Averaging Group
2	In each Averaging Group, Auctioned and tendered licences are separated from grandfathered licences
3	Auctioned and tendered licence V1s converted onto 20 year basis
4	20 year price rolled forward to 2010 at regionalised-z per annum. For each Averaging Group, the best-fit regional or district population growth from Covec paper is applied for the regionalisation of z
5	For each Averaging Group, population-weighted average renewal price per capita calculated on the basis of 2001 populations in original coverage areas
6	Renewal prices for all licences calculated by multiplying the (step 5) price per capita by the 2001 populations in current coverage areas

Last updated 3 April 2008