Explanatory Note
(This note is not part of the Regulations)
These Regulations set out the procedure that will apply to the grant of wireless telegraphy licences at frequencies which are set out in Schedule 1.
To apply, a body corporate must deliver the documents required by regulation 4(3) to the Office of Communications (“OFCOM”) on a day specified by OFCOM. The documents must give details of the existing spectrum holdings of the applicant and others listed in regulations 4(3)(a)(iii). An initial deposit of one hundred thousand pounds must be paid to OFCOM (regulation 4(3)(b)).
OFCOM will determine which applicants are fit to hold a licence, taking into account the matters set out in regulation 12(2). If not disqualified, and if there is no member of its bidder group which is also a member of another bidder group, an applicant shall be qualified to participate (regulations 13(1)).
After giving applicants an opportunity to withdraw, OFCOM will determine the number of bidders (regulation 16), an additional deposit may be paid (regulation 17) and OFCOM will determine an eligibility limit (a term defined in the Regulations) by reference to sums paid on deposit. This limits the bids that can be made.
Further limitations on bids which can be made may also apply to a bidder in the form of an overall bid constraint and a 2.3 GHz bid limit (both are terms defined in the Regulations). These limitations may be different for each bidder and are to be determined by reference to existing spectrum holdings (regulations 20 and 21).
The first stage, called the principal stage, involves one or more rounds of bidding. OFCOM will determine the round price for each round (regulations 29, 30, 31 and 32).
The winning principal stage bids are determined by OFCOM in accordance with regulation 37 by reference to bids which are determined to have standing high bid status (this is a defined term).
The second stage, called the assignment stage, is set out in Part 7. This procedure determines the frequencies which will be assigned to each winning bidder. This is determined through a further round of bidding.
The third stage, called the grant stage, is the procedure set out in Part 8. OFCOM will grant licences to winning bidders and refund any sums due to winning bidders (regulations 107 to 111).
In this award process specific options are available for and specific obligations apply to a company called UK Broadband Limited. This company currently holds a licence in the 3.4 GHz band. The company is defined in the Regulations as the pre-existing licence holder. The particular 3.4 GHz lots available in the award process depend on whether that company takes part and chooses to apply for a new licence to replace the existing licence which it holds. If the company takes part, whether or not it applies for a replacement licence, it is permitted also to bid for additional lots. (Particular regulations which are relevant in this regard are regulations 7, 23, 24, the assignment stage in Part 7 and the grant stage in Part 8.)
If, in relation to an applicant which is qualified to bid or a bidder, OFCOM is satisfied that certain events are occurring or have occurred and that the occurrence would materially affect the outcome of the award process, the applicant or bidder concerned will forfeit sums on deposit held by OFCOM and may be excluded from the award process (regulation 112).
A full regulatory impact assessment of the effect of these Regulations has been prepared. Copies of the impact assessment are available to the public from the OFCOM library at Riverside House, 2a Southwark Bridge Road, London SE1 9HA telephone 020 7981 3000 or on the OFCOM website at www.ofcom.org.uk. Copies of the impact assessment have also been placed in the libraries of the Houses of Parliament.