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Questions and answers regarding the second assignment round of 3.5 GHz spectrum licences
- What is ‘broadband wireless access’?
Broadband wireless access (BWA) is the use of wireless communications to deliver broadband services to individual customers. - What is an area spectrum licence?
This is a form of radio-communications licence, defined by the geographic boundary of a Territorial Local Authority area). The licence holder will be entitled to operate a BWA service within those boundaries until October 2022. - Is a licence the same as a lot?
No. Each lot contains two licences, to accommodate two-way broadband traffic. - How many lots can applicants apply for?
In total, applicants (including any associations – as defined in section 1 of the Allocation Rules) may own one or both of the lots in no more than ten Territorial Local Authority areas (a maximum of 20). This includes any lots they may already have acquired during the first assignment round. - Are there any restrictions on applicants?
Yes. If an applicant has a controlling interest in sufficient alternative spectrum rights or radio licences (excluding general user rights and licences) for the provision of broadband services, or in a substitute broadband delivery system (as defined in section 14 of the Allocation Rules), it cannot participate in this allocation. Successful applicants from the first round who failed to settle are also excluded. - In the first round, lots had to be contiguous. Does this still apply?
No. There is less opportunity for ‘cherry picking’ in round two and many of the remaining lots are isolated so it is not possible for them to be sold as contiguous lots. - What happens if there is only one applicant for a lot?
The lot will be assigned to that applicant at its reserve price. - What happens if there is more than one applicant for a lot?
The applicants will be offered the opportunity to negotiate assignment of the lot to a single applicant. For example, it may be possible for applicants to agree to cooperate and operate a shared service. Should there be no such solution by February 2008, then the lot in question will be offered at tender. - What is a statutory declaration?
This is a declaration, on oath, by the applicant that they meet all of the required conditions. To supply false or misleading information is punishable by law. A template is provided as part of the application pack. - What is a Certificate of Deposit?
This is a document provided under the seal of a trading bank, chartered accountant or solicitor attesting to the deposit in an independent trust account of sufficient funds to cover the reserve prices of the lots applied for. These funds may not be withdrawn until the applicant has been notified of the final result of its application. - What is a ‘single-round closed tender’?
Licences for which there is more than one applicant will be offered at tender in February 2008. Each applicant affected will be sent a bidding sheet on which to mark up to five different selections of lots and specify a bid for each selection. Bidding software will be employed to calculate an optimum outcome (highest bids with maximum coverage). In the event that two or more outcomes of equal value are calculated, a legally supervised draw will determine the result. - What happens if a licence holder fails to establish a BWA service within two years? They will lose the licence without compensation, although a short extension may be granted, subject to Ministry of Economic Development approval.
- Can a licence be sold, leased or the ownership otherwise be transferred?
Only after two years and only if the licence owner has successfully established a BWA service.
Last updated 12 November 2007
