2018 No. 86

Electronic Communications

The Wireless Telegraphy (Licence Award) Regulations 2018

Made24th January 2018

Coming into force31st January 2018

M1The Office of Communications (“OFCOM”), in exercise of the powers conferred by section 14(1), (2), (3), (4), (6) and (7) and section 122(7) of the Wireless Telegraphy Act 2006 (“the Act”), make the following Regulations.

Before making these Regulations OFCOM have given notice of their proposal to do so in accordance with section 122(4)(a) of the Act, published notice of their proposal in accordance with section 122(4)(b) of the Act and have considered the representations made to them before the time specified in that notice in accordance with section 122(4)(c) of the Act.C1

Annotations:

Modifications etc. (not altering text)

Regulations applied (1.2.2018) by The Wireless Telegraphy (Limitation of Number of Licences) Order 2018 (S.I. 2018/89), art. 2(2)

Marginal Citations

2006 c.36.

PART 1Introductory

Citation, commencement, and extent1

1

These Regulations may be cited as the Wireless Telegraphy (Licence Award) Regulations 2018 and shall come into force on 31stJanuary 2018.

2

These Regulations shall not extend to the Channel Islands or the Isle of Man.

Interpretation2

1

In these Regulations—

“2.3 GHz additional price” has the meaning given in regulation 76;
“2.3 GHz assignment stage bid” shall be construed in accordance with regulation 72(1);
“2.3 GHz assignment stage option” has the meaning given in regulation 72(4);
“2.3 GHz assignment stage option list” has the meaning given in regulation 72(4);
“2.3 GHz base price A” has the meaning given in regulation 41(1);
“2.3 GHz base price B” has the meaning given in regulation 41(3);
“2.3 GHz bid limit” shall be construed in accordance with regulation 20;
“2.3 GHz licence” has the meaning given in regulation 91(a);
“2.3 GHz refusal payment” shall be construed in accordance with regulation 103;
“2.3 GHz winning option” has the meaning given in regulation 99(1);
“2.3 GHz withdrawn lot licence” has the meaning given in regulation 91(b);
“3.4 GHz additional price” has the meaning given in regulation 84;
“3.4 GHz assignment stage bid” shall be construed in accordance with regulation 77(1);
“3.4 GHz assignment stage option” has the meaning given in regulation 77(4);
“3.4 GHz assignment stage option list” has the meaning given in regulation 77(4);
“3.4 GHz base price A” has the meaning given in regulation 41(2);
“3.4 GHz base price B” has the meaning given in regulation 41(4);
“3.4 GHz licence” has the meaning given in regulation 91(c);
“3.4 GHz minimum requirement” means the number of 3.4 GHz lots selected by a bidder (if any) as its minimum requirement in the application submitted by that bidder to OFCOM in accordance with regulation 4(3)(a)(i);
“3.4 GHz refusal payment” shall be construed in accordance with regulation 103;
“3.4 GHz winning option” has the meaning given in regulation 100(2);
“3.4 GHz withdrawn lot licence” has the meaning given in regulation 91(d);
“additional 3.4 GHz lot” shall be construed in accordance with regulation 78(2)(a);
“additional deposit” has the meaning given in regulation 17(1);
“additional price” means the 2.3 GHz additional price or the 3.4 GHz additional price;
“applicant” means a body corporate making an application for a licence;
“applicant group” means in relation to an applicant—
1. a
  that applicant;
2. b
  each associate of that applicant; and
3. c
  each person in respect of whom the applicant has delivered to OFCOM a completed document in the form set out in Schedule 3;
“assignment stage” has the meaning given in regulation 22;
“assignment stage bid” means a 2.3 GHz assignment stage bid or a 3.4 GHz assignment stage bid;
“assignment stage form” shall be construed in accordance with regulation 71;
“assignment stage option” means a 2.3 GHz assignment stage option or a 3.4 GHz assignment stage option;
“assignment stage round” shall be construed in accordance with regulation 68;
“associate” means, in relation to an applicant or bidder, a person who has a material interest in that applicant or bidder;
“authorised person” means a person specified by an applicant in its application as authorised to bind that applicant for all purposes relating to the award process;
“bidder” means an applicant which has qualified to bid in the award process and which has not withdrawn from the award process on or before the last day for withdrawal;
“bidder group” shall be construed in accordance with regulation 9;
“bidder ranking list” has the meaning given in regulation 34(2);
“category one bidders” has the meaning given in regulation 34(1)(a);
“category two bidders” has the meaning given in regulation 34(1)(b);
“category three bidder” has the meaning given in regulation 34(1)(c);
“confidential information” means, in relation to any applicant or bidder, any information which is not in the public domain and which, if it were made public or disclosed to another applicant (or potential applicant) or bidder or a member of their respective applicant or bidder group, would be likely to affect decisions that such other applicant (or potential applicant) or bidder may make in relation to the award process;
“current round” means, except in regulations 49 to 52 where the meaning in regulation 49 applies, the principal stage round that has begun but has not yet ended;
“deadline”, in relation to any requirement imposed on any person by or under these Regulations, means (as the case may require)—
1. a
  the time;
2. b
  the date; or
3. c
  the date, and the time on that date;
by which that requirement must be fulfilled by that person;
“electronic auction system” means the system established by OFCOM for bidders to participate in the award process;
“eligibility event” shall be construed in accordance with regulation 52;
“eligibility limit” means, in relation to a bidder, a number of eligibility points which limits the bids that may be made by the bidder in a principal stage round;
“eligibility points used” shall be construed in accordance with regulation 51;
“excess demand” shall be construed in accordance with regulation 55(2);
“existing spectrum holdings” has the meaning given in regulation 5(1);
“existing immediately useable spectrum holdings” has the meaning given in regulation 5(2);
“existing overall spectrum holdings” has the meaning given in regulation 5(3);
“financial exposure” shall be construed in accordance with regulation 63;
“GHz” means gigahertz;
“grant stage” has the meaning given in regulation 22;
“initial deposit” shall be construed in accordance with regulation 4;
“last day for withdrawal” has the meaning given in regulation 15(1);
“leftover 3.4 GHz lots” has the meaning given in regulation 78(2)(b)(ii);
“licence” means a wireless telegraphy licence to be granted pursuant to these Regulations to establish or use a wireless telegraphy station or install or use wireless telegraphy apparatus in the United Kingdom at frequencies comprised in one or more of the 2.3 GHz lots or 3.4 GHz lots to be determined in accordance with the procedure set out in these Regulations;
“material interest” means, whether held directly or indirectly—
1. a
  any interest (construed in accordance with sections 820 to 825 of the Companies Act 2006 M2) in—
  1. i
    any share which carries, or any shares which together carry, more than twenty-five per cent of the votes entitled to be cast at a general meeting of the applicant or bidder; or
  2. ii
    any share or shares in the case where the consent of the holder of that share or those shares is required for the conduct of any business of the applicant or bidder; or
2. b
  the right to appoint or remove a majority of the applicant's or bidder's board of directors;
“MHz” means megahertz;
“most recent round” means the principal stage round that has most recently ended;
“OFCOM” means the Office of Communications;
“OFCOM's bank account” means the bank account nominated by OFCOM for the purposes of the award process, details of which are published on their website;
“overall bid list” has the meaning given in regulation 35(3);
“overall bid constraint” shall be construed in accordance with regulation 21;
“pounds” means pounds sterling;
“pre-existing licence” means the licence with number 1111442 which authorises the establishment, installation and use of wireless telegraphy stations and wireless telegraphy apparatus in the frequency ranges 3480-3500 MHz and 3580-3600 MHzM3 held by UK Broadband Limited;
“pre-existing licence holder” means UK Broadband Limited (a company with company registration number 04713634);
“previous round” means the principal stage round that immediately preceded the most recent round;
“principal stage” has the meaning given in regulation 22;
“principal stage bid” shall be construed in accordance with regulation 27;
“principal stage form” shall be construed in accordance with regulation 26;
“principal stage round” shall be construed in accordance with regulation 25;
“recorded spectrum holdings” means recorded immediately useable spectrum holdings and recorded overall spectrum holdings;
“recorded immediately useable spectrum holdings” shall be construed in accordance with regulation 19(2);
“recorded overall spectrum holdings” shall be construed in accordance with regulation 19(3);
“refusal payment” shall be construed in accordance with regulation 103;
“replacement licence” is a licence applied for under this award process which authorises the use of frequencies comprised in a block of eight 3.4 GHz lots on substantially the same terms, conditions and limitations which apply to the pre-existing licence;
“required assignment stage deposit” shall be construed in accordance with regulation 89;
“required final principal stage deposit” shall be construed in accordance with regulation 64;
“round” means a period of time specified by OFCOM during which bidders may make bids in accordance with the procedure set out in these Regulations;
“round event” shall be construed in accordance with regulation 28;
“round price” shall be construed in accordance with regulations 29 and 30;
“standing high bid status” shall be construed in accordance with regulations 33 to 36;
“third party” has the meaning given in regulation 4(3)(a)(iii)(ee);
“third party parent” has the meaning given in regulation 4(3)(a)(iii)(ff);
“total 2.3 GHz base price A” has the meaning given in regulation 42(1);
“total 2.3 GHz base price B” has the meaning given in regulation 42(3);
“total 3.4 GHz base price A” has the meaning given in regulation 42(2);
“total 3.4 GHz base price B” has the meaning given in regulation 42(4);
“total auction sum” shall be construed in accordance with regulation 104;
“total base price” means, in respect of a bidder, the sum of that bidder's total 2.3 GHz base price A (if any), total 2.3 GHz base price B (if any), total 3.4 GHz base price A (if any) and total 3.4 GHz base price B (if any);
“total frequencies associated with a principal stage form” has the meaning given in regulation 44(2);
“valid 2.3 GHz assignment stage bid” shall be construed in accordance with regulation 74;
“valid 3.4 GHz assignment stage bid” shall be construed in accordance with regulation 80;
“valid assignment stage bid” means a valid 2.3 GHz assignment stage bid or a valid 3.4 GHz assignment stage bid;
“valid assignment stage form” shall be construed in accordance with regulation 71;
“valid combination of 2.3 GHz assignment stage bids” shall be construed in accordance with regulation 75;
“valid combination of 3.4 GHz assignment stage bids” shall be construed in accordance with regulation 82 or 83 as the context requires;
“valid request to carry forward its eligibility limit” shall be construed in accordance with regulation 26;
“valid withdrawal of standing high bid status” shall be construed in accordance with regulation 26;
“valid principal stage bid” shall be construed in accordance with regulation 26;
“valid principal stage form” shall be construed in accordance with regulation 26;
“winning 2.3 GHz assignment stage bid” shall be construed in accordance with regulation 75;
“winning 3.4 GHz assignment stage bid” shall be construed in accordance with regulation 81;
“winning assignment stage bid” means a winning 2.3 GHz assignment stage bid or a winning 3.4 GHz assignment stage bid;
“winning bidder” means a winning bidder for 2.3 GHz lots or a winning bidder for 3.4 GHz lots;
“winning bidder for 2.3 GHz lots” means a bidder who made bids for 2.3 GHz lots which became winning principal stage bids in accordance with regulations 38 or 39;
“winning bidder for 3.4 GHz lots” means a bidder (including the pre-existing licence holder if it is a bidder) who made bids for 3.4 GHz lots which became winning principal stage bids in accordance with regulations 38 or 40 and also the pre-existing licence holder in respect of eight 3.4 GHz lots if it is deemed to be a winning bidder under regulation 23;
“winning combination of valid 2.3 GHz assignment stage bids” shall be construed in accordance with regulation 75;
“winning combination of valid 3.4 GHz assignment stage bids” shall be construed in accordance with regulation 81;
“winning principal stage bid” shall be construed in accordance with regulations 37 to 40;
“withdrawal of standing high bid status” shall be construed in accordance with regulation 47; and
“withdrawn lot licence” means a 2.3 GHz withdrawn lot licence or a 3.4 GHz withdrawn lot licence.

2

A reference in these Regulations to a “2.3 GHz lot” or a “3.4 GHz lot” shall be construed in accordance with Schedule 1.

3

A reference in these Regulations to a “lot type” or “lot” shall be construed in accordance with Schedule 1.

4

A reference in these Regulations to a numbered 2.3 GHz lot, a numbered 3.4 GHz lot or a “block” of such lots shall be construed in accordance with Schedule 1.

5

A reference in these Regulations to the “lower 3.4 GHz frequency range” or the “upper 3.4 GHz frequency range” shall be construed in accordance with Schedule 1.

PART 2Application stage

Applications for the grant of a licence3

Applications for the grant of a licence shall only be made in accordance with the procedure set out in these Regulations.

Application4

1

Only a body corporate may apply to OFCOM for a licence.

2

A body corporate may only make one application.

3

To apply for a licence, a body corporate must—

a

on the day or days specified by OFCOM for receipt of applications, deliver to OFCOM at Riverside House, 2a Southwark Bridge Road, London SE1 9HA within the times on that day or those days specified by OFCOM a sealed envelope containing—

i

a document containing the application information required by, and the warranty set out in, Schedule 2, completed in respect of the applicant and signed on its behalf by two authorised persons;

ii

for each person, not being an associate of the applicant, which the applicant wishes to join its applicant group, a document in the form set out in Schedule 3 which has been—

aa

completed by the applicant and signed on its behalf by two authorised persons; and

bb

completed by and signed by or on behalf of the person in respect of whom that document is completed; and

iii

a document setting out the details of the existing spectrum holdings of—

aa

the applicant;

bb

each other member of its applicant group;

cc

each person in whom the applicant has a material interest;

dd

each person in whom any other member of its applicant group has a material interest;

ee

any person (“third party”) who has entered into a contract or arrangement with the applicant (or with any other member of its applicant group or any person in whom the applicant or any other member of its applicant group has a material interest) to acquire rights under a licence granted pursuant to the award process;

ff

any person who has a material interest in a third party (“third party parent”);

gg

any person in whom a third party has a material interest;

hh

any person in whom a third party parent has a material interest; and

b

subject to regulation 7(4), by a deadline specified by OFCOM, pay into OFCOM's bank account, with accompanying information which identifies the applicant, an initial deposit of one hundred thousand pounds.

4

OFCOM shall publish the day or days, times and deadline on their website.

5

The details of existing spectrum holdings that are required are—

a

the wireless telegraphy licence number; and

b

the frequencies.

Meaning of existing spectrum holdings5

1

In these Regulations “existing spectrum holdings” means—

a

existing immediately useable spectrum holdings; and

b

existing overall spectrum holdings.

2

“Existing immediately useable spectrum holdings” means—

a

any authorisation to establish or use a wireless telegraphy station, or to install or use wireless telegraphy apparatus, under a wireless telegraphy licence which relates to any of the frequencies in the frequency bands listed in Schedule 7; and

b

any contract or arrangement under which such an authorisation is to be acquired.

3

“Existing overall spectrum holdings” means—

a

b

any contract or arrangement under which such an authorisation is to be acquired.

3.4 GHz minimum requirement rule6

The 3.4 GHz minimum requirement which must be specified by the applicant in the document referred to in regulation 4(3)(a)(i) shall not be greater than four.

Application for a replacement licence7

1

The pre-existing licence holder may apply to OFCOM for a replacement licence under this award process.

2

No other person may apply to OFCOM for a replacement licence.

3

To apply for a replacement licence, the pre-existing licence holder, in addition to meeting the requirements of regulation 4(3), must by the same deadline also deliver to OFCOM in the same sealed envelope—

a

a declaration, in the form set out in Schedule 4, signed by two persons on behalf of the pre-existing licence holder, consenting to the revocation of the pre-existing licence; and

b

a document indicating whether it will participate in the principal stage and the assignment stage, or only in the assignment stage.

4

If the pre-existing licence holder indicates that it will participate only in the assignment stage (so that it is a winning bidder only in respect of eight 3.4 GHz lots in accordance with regulation 23) the requirement to pay an initial deposit of one hundred thousand pounds under regulation 4(3)(b) does not apply to the pre-existing licence holder.

PART 3Qualification stage

CHAPTER 1Qualification

Notification of names of applicants and associates8

1

OFCOM shall give notice to each applicant of—

a

the name of each other applicant and the names of their associates; and

b

a

a document in the form set out in Schedule 3 completed by the applicant or bidder and signed on its behalf by two authorised persons and completed by and signed by or on behalf of the person in respect of whom that document is completed; and

b

a revised version of the document provided under regulation 4(3)(a)(iii) which complies with that provision following the change.

Changes to existing spectrum holdings11

If an applicant or, in relation to an applicant, any person referred to in regulation 4(3)(a)(iii) changes its existing spectrum holdings before existing spectrum holdings are recorded under regulation 19, the applicant must notify OFCOM and deliver to OFCOM a revised version of the document provided under regulation 4(3)(a)(iii) which complies with that provision following the change.

OFCOM shall inform an applicant which is disqualified of their decision and the reasons for it but that applicant's initial deposit shall not be forfeited because of that decision.

Qualification to participate in the award process13

1

Each applicant—

a

which was not disqualified under regulation 12, and

b

which has no member of its bidder group which is also a member of the bidder group of another applicant (which was not disqualified under regulation 12),

shall be qualified to participate in the award process.

2

An applicant which has a member of its bidder group which is also a member of the bidder group of another applicant shall not be qualified to participate in the award process.

3

Where an applicant is not qualified to participate in the award process, OFCOM shall inform that applicant of that fact but that applicant's initial deposit shall not be forfeited for that reason.

Publication of names of qualified applicants14

1

OFCOM shall notify each applicant qualified to participate of—

a

the name of each other applicant who is so qualified;

b

Before the first principal stage round OFCOM shall—

a

determine for each bidder; and

b

notify to each bidder an overall bid constraint.

2

The overall bid constraint may be different for each bidder.

3

The overall bid constraint shall be expressed as a number of frequencies in MHz and shall be calculated in accordance with paragraphs (4) and (5).

4

The number referred to in paragraph (3) shall be calculated in accordance with the formula 340 MHz – z rounded down to the nearest multiple of 5 MHz, where z is the total in MHz of the bidder's recorded overall spectrum holdings.

5

Where the number of MHz resulting from the calculation referred to in paragraph (4) is higher than 190 MHz, the number shall be 190 MHz and not that higher number.

6

A bidder's overall bid constraint shall not change during the principal stage.

PART 4Award process

Principal stage, assignment stage and grant stage22

1

The process for the award of licences shall consist of the procedure set out in Part 6 (“principal stage”), the procedure set out in Part 7 (“assignment stage”) and the procedure set out in Part 8 (“grant stage”).

2

During the principal stage, OFCOM shall determine the total number of 2.3 GHz lots and the total number of 3.4 GHz lots which each bidder wins, but not the particular numbered 2.3 GHz lots and particular numbered 3.4 GHz lots.

3

Following completion of the principal stage, OFCOM shall determine the particular numbered 2.3 GHz lots and particular numbered 3.4 GHz lots that are to be assigned to the winning bidders in accordance with the procedure set out in the assignment stage.

4

Following completion of the assignment stage, OFCOM shall grant licences authorising the use of the frequencies determined in accordance with the grant stage.

PART 5Participation by the pre-existing licence holder

Participation by the pre-existing licence holder where it is a bidder and has applied for a replacement licence23

Where the pre-existing licence holder is a bidder and has applied for a replacement licence—

a

it may not participate in the principal stage unless it has indicated that it will do so on the document that it submitted in accordance with regulation 7(3)(b); and

b

it will be deemed to be a winning bidder in respect of eight 3.4 GHz lots with an associated base price of zero pounds, without having made principal stage bids, in addition to any 3.4 GHz lots that it may have won as a result of making principal stage bids.

3.4 GHz lots available in the award process24

The 3.4 GHz lots which are available in the award process shall be—

a

the 3.4 GHz lots numbered 1 to 14 and 19 to 34, if—

i

the pre-existing licence holder is a bidder but did not apply for a replacement licence; or

ii

the pre-existing licence holder is not a bidder; or

b

the 3.4 GHz lots numbered 1 to 38, if the pre-existing licence holder is a bidder and did apply for a replacement licence.

PART 6The principal stage

CHAPTER 1Principal stage rounds, principal stage forms, principal stage bids and round prices

Principal stage rounds25

1

During the principal stage, there shall be one or more principal stage rounds.

2

A principal stage round shall begin and end at the times notified by OFCOM under regulation 54.

3

The number of principal stage rounds shall be determined by OFCOM in accordance with regulation 28.

Principal stage form26

1

OFCOM shall provide each bidder in the principal stage with a principal stage form.

2

Subject to paragraph (8), a bidder is not required to submit a principal stage form in respect of each principal stage round.

3

Where a bidder chooses to complete a principal stage form in respect of a principal stage round, that bidder must, on the principal stage form—

a

specify the number of principal stage bids for 2.3 GHz lots it wishes to make in that round;

b

specify the number of principal stage bids for 3.4 GHz lots it wishes to make in that round;

c

indicate whether it wishes to withdraw the standing high bid status of its bids for 2.3 GHz lots from consideration by OFCOM for the assignment of standing high bid status after the end of that round;

d

indicate whether it wishes to withdraw the standing high bid status of its bids for 3.4 GHz lots from consideration by OFCOM for the assignment of standing high bid status after the end of that round; and

e

indicate whether it wishes to carry forward its eligibility limit (as determined for that round) to the next round.

4

A principal stage form submitted by a bidder in a round is a valid principal stage form if—

a

the bidder has completed the form in accordance with paragraph (3);

b

the bidder has submitted the form in accordance with regulation 59 or 60;

c

the bidder has complied with regulations 43, 45, 46 and 49 in respect of any principal stage bids specified on the form;

d

the bidder has complied with regulation 47 in respect of any withdrawal of standing high bid status indicated on the form;

e

the bidder has complied with regulation 44 in respect of the total frequencies associated with the form; and

f

the bidder has complied with regulation 48 in respect of any request to carry forward its eligibility limit indicated on the form.

5

A principal stage bid is a valid principal stage bid if it is specified on a valid principal stage form.

6

A withdrawal of standing high bid status is a valid withdrawal of standing high bid status if it is indicated on a valid principal stage form.

7

Any request by a bidder to carry forward its eligibility limit is a valid request to carry forward its eligibility limit if it is indicated on a valid principal stage form.

8

Any bidder in the principal stage which, in the first principal stage round, does not specify at least one valid principal stage bid shall be excluded from the award process and shall not receive a refund of any sums which the bidder has paid as a deposit under these Regulations, which shall (where not already forfeited) be forfeited together with any interest which has accrued on the deposit.

Principal stage bids27

1

Each principal stage bid is a bid for the inclusion in a licence of one lot of a particular type at the round price for a lot of that type or, in the circumstances described in paragraph (2), at twice the round price for a lot of that type.

2

The circumstances are where the principal stage bid becomes a winning principal stage bid after withdrawal of that bid's standing high bid status in accordance with regulation 39 or 40.

Number of principal stage rounds28

1

After the end of each principal stage round, OFCOM shall determine whether there was a round event in that round in accordance with paragraph (4).

2

Where OFCOM determine that there was no round event in that principal stage round there shall be no further principal stage rounds, and OFCOM shall determine the winning principal stage bids in accordance with regulation 37.

3

Where OFCOM determine that there was a round event in that principal stage round, there shall be another principal stage round.

4

There was a round event in a principal stage round where—

a

a bidder specified a valid principal stage bid in that round;

b

a bidder indicated a valid withdrawal of standing high bid status in that round; or

c

an eligibility event occurred in that round.

Round prices for the first principal stage round29

For the first principal stage round—

a

the round price for each 2.3 GHz lot shall be ten million pounds; and

b

the round price for each 3.4 GHz lot shall be one million pounds.

Determination of round prices for subsequent principal stage rounds30

1

CHAPTER 2Assignment of standing high bid status

Assignment of standing high bid status by OFCOM after the end of each principal stage round33

1

After the end of each principal stage round, OFCOM shall assign standing high bid status to valid principal stage bids for 2.3 GHz lots and valid principal stage bids for 3.4 GHz lots in accordance with paragraphs (2) and (3).

2

OFCOM shall assign standing high bid status for each lot type separately.

3

OFCOM shall assign standing high bid status by—

a

first, identifying and ranking the bidders in accordance with regulation 34;

b

second, identifying and ranking the bids made by those bidders in accordance with regulation 35; and

c

third, assigning standing high bid status to those bids in accordance with regulation 36.

Process for assigning standing high bid status: ranking the bidders34

1

For each lot type separately, OFCOM shall identify the bidders that fall into one of the following three categories such that—

a

the first category contains the bidders (if any) (“category one bidders”) which made valid principal stage bids for a lot of that type at the round price of the most recent round (whether made in the most recent round or in an earlier round);

b

the second category contains the bidders (if any) (“category two bidders”) which made valid principal stage bids for lots of that type in the latest round in which the bidder submitted bids for lots of that type satisfying the following conditions—

i

the bids were made at a round price which was lower than the round price of the most recent round; and

ii

all of the bids were assigned standing high bid status by OFCOM after the end of the previous round;

c

the third category contains the only bidder (if any) (“category three bidder”) which made valid principal stage bids for lots of that type in the latest round in which the bidder submitted bids for lots of that type satisfying the following conditions—

i

the bids were made at a round price which was lower than the round price of the most recent round;

ii

some but not all of the bids were assigned standing high bid status by OFCOM after the end of the previous round; and

principal stage bids in respect of which standing high bid status was withdrawn shall also become winning principal stage bids in accordance with regulations 39 or 40.

Bids with standing high bid status becoming winning principal stage bids38

1

CHAPTER 4Constraints for principal stage bids, withdrawals of standing high bid status and carrying forward an eligibility limit

SECTION 1Constraints for principal stage bids

Maximum number of principal stage bids for 2.3 GHz lots and 3.4 GHz lots43

In any principal stage round—

a

the number of principal stage bids for 2.3 GHz lots that a bidder may make shall not exceed that bidder's 2.3 GHz bid limit; and

b

the number of principal stage bids for 3.4 GHz lots that a bidder may make shall not exceed thirty.

Overall bid constraint rule44

2

In this Chapter, a round in relation to which the number of eligibility points used is calculated is referred to as the “current round”.

Determination of a bidder's eligibility limit50

1

A bidder's eligibility limit shall be the number determined by OFCOM—

a

for the first principal stage round, in accordance with regulation 18; and

b

for the second and each subsequent principal stage round, in accordance with paragraphs (2) and (3).

2

In relation to the second and each subsequent principal stage round, the bidder's eligibility limit shall be equal to the number of eligibility points used by the bidder in the most recent round, except where an eligibility event occurred in the most recent round.

3

In relation to each principal stage round where an eligibility event occurred in the most recent round, the bidder's eligibility limit shall be the same as its eligibility limit for the most recent round.

Eligibility points used by a bidder51

1

The number of eligibility points used by a bidder in the current round shall be the number equal to the sum of the 2.3 GHz number calculated in accordance with paragraph (2) and the 3.4 GHz number calculated in accordance with paragraph (3).

2

The 2.3 GHz number referred to in paragraph (1) is—

a

where the bidder has specified a number of principal stage bids for 2.3 GHz lots in the current round, the number of bids for 2.3 GHz lots in that round specified on that bidder's principal stage form, multiplied by four;

b

where the bidder has not specified any principal stage bids for 2.3 GHz lots in the current round, the number of bids for 2.3 GHz lots made by that bidder to which OFCOM assigned standing high bid status after the end of the most recent round and in respect of which the standing high bid status is not withdrawn by the bidder in the current round, multiplied by four; and

c

where the bidder has not specified any principal stage bids for 2.3 GHz lots in the current round and OFCOM did not assign standing high bid status after the end of the most recent round to any bids for 2.3 GHz lots made by that bidder, zero.

3

The 3.4 GHz number referred to in paragraph (1) is—

a

where the bidder has specified a number of principal stage bids for 3.4 GHz lots in the current round, the number of bids for 3.4 GHz lots in that round specified on that bidder's principal stage form;

b

where the bidder has not specified any principal stage bids for 3.4 GHz lots in the current round, the number of principal stage bids for 3.4 GHz lots made by that bidder to which OFCOM assigned standing high bid status after the end of the most recent round and in respect of which the standing high bid status is not withdrawn by the bidder in the current round; and

c

where the bidder has not specified any principal stage bids for 3.4 GHz lots in the current round and OFCOM did not assign standing high bid status after the end of the most recent round to any bids for 3.4 GHz lots made by that bidder, zero.

Any principal stage bids made by that bidder to which OFCOM has assigned standing high bid status after the end of the final principal stage round will become winning principal stage bids in accordance with regulation 38.

4

Any principal stage bids made by that bidder in respect of which standing high bid status was withdrawn will become winning principal stage bids in accordance with regulation 39 or 40 if, after the end of the final principal stage round, the circumstances described in regulation 39(2) or 40(2) apply.

CHAPTER 7Information released during and following the principal stage

Notice to be given to bidders before each principal stage round54

Before the start of each principal stage round, OFCOM shall notify each bidder of—

a

the date on which, and the times on that date within which, the principal stage round will take place;

b

the round price for—

i

a 2.3 GHz lot; and

ii

a 3.4 GHz lot;

c

the remaining number of principal stage rounds in which the bidder may withdraw the standing high bid status of bids;

d

the remaining number of occasions on which an eligibility event may occur in respect of that bidder; and

e

the bidder's eligibility limit for that principal stage round.

3

Where the bidder does not give such confirmation, the principal stage form in its entirety shall be invalid and rejected by OFCOM.

Notification that principal stage form is not valid62

Where a bidder submits a principal stage form that is not a valid principal stage form during a principal stage round, OFCOM shall, after the end of that principal stage round, notify the bidder of that fact and shall give the reasons why the principal stage form is not a valid principal stage form.

CHAPTER 9Deposits during and following the principal stage

Deposits during the principal stage63

1

Where, after the end of any principal stage round, the amount a bidder has on deposit with OFCOM for the purposes of the award process is less than the bidder's financial exposure, OFCOM may, having regard to the desirability of securing an efficient outcome to the principal stage, notify the bidder that it is required to pay a further sum in pounds as a deposit.

2

A bidder's financial exposure after the end of a principal stage round shall be the amount in pounds which is equal to the sum of—

a

the number of that bidder's principal stage bids for 2.3 GHz lots to which OFCOM assigned standing high bid status after the end of that principal stage round, multiplied by the round price at which those bids were made;

b

the number of that bidder's principal stage bids for 3.4 GHz lots to which OFCOM assigned standing high bid status after the end of that principal stage round, multiplied by the round price at which those bids were made;

c

the number of that bidder's principal stage bids for 2.3 GHz lots which would become winning principal stage bids in accordance with regulation 39 (following the withdrawal of standing high bid status) if that principal stage round was the final principal stage round, multiplied by the round price at which those bids were made; and

d

the number of that bidder's principal stage bids for 3.4 GHz lots which would become winning principal stage bids in accordance with regulation 40 (following the withdrawal of standing high bid status) if that principal stage round was the final principal stage round, multiplied by the round price at which those bids were made.

3

The further sum shall be an amount determined by OFCOM such that the total amount that the bidder is required to have on deposit is at most the amount of the bidder's highest financial exposure after the end of any of the previous principal stage rounds before OFCOM gave notice to the bidder under paragraph (1).

4

Any such sum must be paid into OFCOM's bank account with accompanying information which identifies the bidder, by a deadline specified by OFCOM.

5

Where a bidder does not satisfy the requirements set out in paragraph (4), OFCOM shall notify the bidder of that fact.

Required final principal stage deposit64

1

After the final principal stage round, a further sum in pounds must be paid into OFCOM's bank account with accompanying information which identifies the bidder, by a deadline specified by OFCOM (“required final principal stage deposit”).

2

In respect of any bidder, the required final principal stage deposit shall be an amount such that the total amount that the bidder has on deposit is not less than the amount which is the sum of—

a

that bidder's total 2.3 GHz base price A;

b

that bidder's total 3.4 GHz base price A;

c

one half of that bidder's total 2.3 GHz base price B; and

d

one half of that bidder's total 3.4 GHz base price B.

the pre-existing licence holder is a bidder and did apply for a replacement licence,

OFCOM shall assign lots in a single assignment stage round in accordance with the procedure set out in chapters 2 to 6.

CHAPTER 2Assignment without bidding

Assignment of numbered 2.3 GHz lots without bidding66

Where there is only one winning bidder for all of the 2.3 GHz lots, OFCOM shall assign all of the 2.3 GHz lots to that winning bidder.

Assignment of numbered 3.4 GHz lots without bidding67

1

Where the pre-existing licence holder is a bidder and—

a

did apply for a replacement licence, and

b

is the winning bidder for all of the 3.4 GHz lots,

OFCOM shall assign all of the 3.4 GHz lots to the pre-existing licence holder.

2

Where—

a

the pre-existing licence holder—

i

is not a bidder; or

ii

is a bidder but did not apply for a replacement licence; and

b

there is only one winning bidder for 3.4 GHz lots; and

c

that winning bidder won thirty 3.4 GHz lots,

OFCOM shall assign the lower 3.4 GHz frequency range and the upper 3.4 GHz frequency range to that winning bidder.

3

Where—

a

the pre-existing licence holder—

i

is not a bidder; or

ii

is a bidder but did not apply for a replacement licence; and

b

there are two winning bidders for 3.4 GHz lots; and

c

one winning bidder won fourteen 3.4 GHz lots and the other winning bidder won sixteen 3.4 GHz lots,

OFCOM shall assign the lower 3.4 GHz frequency range to the bidder who won fourteen 3.4 GHz lots, and the upper 3.4 GHz frequency range to the bidder who won sixteen 3.4 GHz lots.

CHAPTER 3Assignment by bidding

Assignment of numbered 2.3 GHz lots by bidding68

Except where regulation 66 applies, the particular numbered 2.3 GHz lots that are to be assigned to the winning bidder or bidders for the 2.3 GHz lots shall be determined by bidding in one further round of bidding (the “assignment stage round”) in accordance with the procedure set out in regulations 70 to 76.

Assignment of numbered 3.4 GHz lots by bidding69

Except where regulation 67 applies, the particular numbered 3.4 GHz lots that are to be assigned to the winning bidder or bidders for the 3.4 GHz lots shall be determined by bidding in the assignment stage round in accordance with the procedure set out in regulations 70, 71 and 77 to 84.

Assignment stage round70

1

Only the following bidders may bid in the assignment stage round—

a

winning bidders for 2.3 GHz lots; and

b

winning bidders for 3.4 GHz lots.

2

The assignment stage round shall begin and end at the times notified by OFCOM under regulation 85.

Assignment stage form71

1

OFCOM shall provide each winning bidder with an assignment stage form.

2

To bid in the assignment stage round, a bidder must specify on the assignment stage form—

a

the bidder's 2.3 GHz assignment stage bids, if any, in accordance with regulation 74; and

b

the bidder's 3.4 GHz assignment stage bids, if any, in accordance with regulation 80.

3

An assignment stage form is a valid assignment stage form if—

a

the bidder has complied with regulations 74(1) and 74(2) or regulations 80(1) and 80(2) in respect of all assignment stage bids specified on the form; and

b

the bidder has submitted the form in accordance with regulation 86 or 87.

4

Where a bidder submits an assignment stage form which is not a valid assignment stage form, OFCOM shall, after the end of the assignment stage round, notify the bidder of that fact and shall give the reasons why the assignment stage form is not a valid assignment stage form.

the bid is specified on a valid assignment stage form; and

b

the bidder has paid the full sum of the required assignment stage deposit by the deadline specified by OFCOM.

5

Where a bidder does not make a valid 2.3 GHz assignment stage bid for a 2.3 GHz assignment stage option that bidder will be deemed to have made a valid 2.3 GHz assignment stage bid with a value of zero pounds for that 2.3 GHz assignment stage option.

Determination of the winning 2.3 GHz assignment stage bids75

1

OFCOM shall determine the winning 2.3 GHz assignment stage bids in accordance with this regulation after the deadline for paying the required assignment stage deposit under regulation 89.

2

The winning 2.3 GHz assignment stage bids shall be those valid 2.3 GHz assignment stage bids that comprise the winning combination of valid 2.3 GHz assignment stage bids.

3

The winning combination of valid 2.3 GHz assignment stage bids shall be the valid combination of 2.3 GHz assignment stage bids having the highest total value of amounts bid.

4

A combination of valid 2.3 GHz assignment stage bids is a valid combination of 2.3 GHz assignment stage bids if—

a

within that combination there is one valid 2.3 GHz assignment stage bid from each winning bidder for 2.3 GHz lots;

b

each of those valid 2.3 GHz assignment stage bids is for a 2.3 GHz assignment stage option as determined by OFCOM for the bidder;

c

no numbered 2.3 GHz lot is included in more than one of the 2.3 GHz assignment stage bids included in the combination of valid 2.3 GHz assignment stage bids; and

d

the numbered 2.3 GHz lots not included in that combination of valid 2.3 GHz assignment stage bids, taken together, form a single block of numbered 2.3 GHz lots.

5

Where there is more than one valid combination of 2.3 GHz assignment stage bids for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of 2.3 GHz assignment stage bids for which the value is equal highest to determine the winning combination of valid 2.3 GHz assignment stage bids.

Determination of 2.3 GHz additional prices76

In respect of each winning 2.3 GHz assignment stage bid, OFCOM shall determine an amount in whole pounds (“2.3 GHz additional price”) which shall be payable by the relevant winning bidder in accordance with Schedule 5.

CHAPTER 53.4 GHz frequency assignments determined by bidding

Bidding for numbered 3.4 GHz lots in the assignment stage77

1

A 3.4 GHz assignment stage bid shall be a bid for one or more licences that authorise the use of the frequencies corresponding to the particular numbered 3.4 GHz lots comprised in a block or pair of blocks of numbered 3.4 GHz lots.

2

OFCOM shall determine the blocks and pairs of blocks of numbered 3.4 GHz lots a bidder may bid for, and notify that bidder of its determination.

3

The list of possible blocks and pairs of blocks of numbered 3.4 GHz lots provided to each bidder may be different for each bidder.

4

The list shall be known as the “3.4 GHz assignment stage option list” and each block or pair of blocks of numbered 3.4 GHz lots in that list shall be known as a “3.4 GHz assignment stage option”.

Preparing a 3.4 GHz assignment stage option list for each bidder if the pre-existing licence holder is a bidder and did apply for a replacement licence78

1

This regulation applies where the pre-existing licence holder is a bidder and did apply for a replacement licence.

2

The 3.4 GHz assignment stage options for the pre-existing licence holder which applied for a replacement licence shall be each of those blocks of numbered 3.4 GHz lots which satisfy the following conditions—

a

the number of 3.4 GHz lots contained in the block is equal to the sum of the number of 3.4 GHz lots won by the pre-existing licence holder as a consequence of bidding in the principal stage (the “additional 3.4 GHz lots”), if any, and the number eight; and

b

if the pre-existing licence holder were assigned the 3.4 GHz lots contained in the block the following conditions would be satisfied—

i

each other bidder could be assigned the number of 3.4 GHz lots, contained in a block, that is equal to the number of that other bidder's winning principal stage bids for 3.4 GHz lots; and

ii

the 3.4 GHz lots not assigned to the pre-existing licence holder or any other bidder (the “leftover 3.4 GHz lots”) would form a single block of numbered 3.4 GHz lots.

3

The 3.4 GHz assignment stage options for a bidder which is not the pre-existing licence holder shall be each of those blocks of numbered 3.4 GHz lots which satisfy the following conditions—

a

the number of 3.4 GHz lots contained in the block is equal to the number of that bidder's winning principal stage bids for 3.4 GHz lots; and

b

if that bidder were assigned the 3.4 GHz lots contained in the block the following conditions would be satisfied—

i

subject to sub-paragraph (ii), each other bidder could be assigned the number of 3.4 GHz lots, contained in a block, that is equal to the number of that other bidder's winning principal stage bids for 3.4 GHz lots;

ii

the pre-existing licence holder could be assigned the number of 3.4 GHz lots, contained in a block, that is equal to the sum of the number of additional 3.4 GHz lots, if any, and the number eight; and

iii

the leftover 3.4 GHz lots would form a single block of numbered 3.4 GHz lots.

A 3.4 GHz assignment stage bid is a valid 3.4 GHz assignment stage bid if—

a

the bid is specified on a valid assignment stage form; and

b

the bidder has paid the full sum of the required assignment stage deposit by the deadline specified by OFCOM.

5

Where a bidder does not make a valid 3.4 GHz assignment stage bid for a 3.4 GHz assignment stage option that bidder will be deemed to have made a valid 3.4 GHz assignment stage bid with a value of zero pounds for that 3.4 GHz assignment stage option.

Determination of the winning 3.4 GHz assignment stage bids81

1

OFCOM shall determine the winning 3.4 GHz assignment stage bids in accordance with this regulation, regulation 82 and regulation 83 after the deadline for paying the required assignment stage deposit.

2

The winning 3.4 GHz assignment stage bids shall be those valid 3.4 GHz assignment stage bids that comprise the winning combination of valid 3.4 GHz assignment stage bids.

3

The winning combination of valid 3.4 GHz assignment stage bids shall be the valid combination of 3.4 GHz assignment stage bids, determined in accordance with regulation 82 or regulation 83, having the highest total value of amounts bid.

4

Where there is more than one valid combination of 3.4 GHz assignment stage bids for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of 3.4 GHz assignment stage bids for which the value is equal highest to determine the winning combination of valid 3.4 GHz assignment stage bids.

Valid combinations of 3.4 GHz assignment stage bids where the pre-existing licence holder is a bidder and did apply for a replacement licence82

1

This regulation applies where the pre-existing licence holder is a bidder and did apply for a replacement licence.

2

A combination of valid 3.4 GHz assignment stage bids is a valid combination of 3.4 GHz assignment stage bids if—

a

within that combination there is one valid 3.4 GHz assignment stage bid from each winning bidder for 3.4 GHz lots;

b

each of those valid 3.4 GHz assignment stage bids is for a 3.4 GHz assignment stage option as determined by OFCOM for the bidder under regulation 78;

c

no numbered 3.4 GHz lot is included in more than one of the 3.4 GHz assignment stage bids included in the combination of valid 3.4 GHz assignment stage bids; and

d

the numbered 3.4 GHz lots not included in that combination of valid 3.4 GHz assignment stage bids together form a single block of numbered 3.4 GHz lots.

Valid combinations of 3.4 GHz assignment stage bids where the pre-existing licence holder is not a bidder or is a bidder but did not apply for a replacement licence83

1

This regulation applies where the pre-existing licence holder—

a

is not a bidder; or

b

is a bidder but did not apply for a replacement licence.

2

A combination of valid 3.4 GHz assignment stage bids is a valid combination of 3.4 GHz assignment stage bids if—

a

within that combination there is one valid 3.4 GHz assignment stage bid from each winning bidder for 3.4 GHz lots;

b

each of those valid 3.4 GHz assignment stage bids is for a 3.4 GHz assignment stage option as determined by OFCOM for the bidder under regulation 79;

c

no numbered 3.4 GHz lot is included in more than one of the 3.4 GHz assignment stage options included in the combination of valid 3.4 GHz assignment stage bids; and

d

the numbered 3.4 GHz lots not included in that combination of valid assignment stage bids together form at most one single block of numbered 3.4 GHz lots in the lower 3.4 GHz frequency range and at most one single block of numbered 3.4 GHz lots in the upper 3.4 GHz frequency range.

Determination of 3.4 GHz additional prices84

In respect of each winning 3.4 GHz assignment stage bid, OFCOM shall determine an amount in whole pounds (“3.4 GHz additional price”) which shall be payable by the relevant winning bidder in accordance with Schedule 6.

CHAPTER 6Procedure and further deposit for assignment stage

Notice to bidders before the assignment stage round85

Before the start of the assignment stage round, OFCOM shall notify each bidder that may make an assignment stage bid in the assignment stage round of—

a

the 2.3 GHz and 3.4 GHz assignment stage options that are available to that bidder in the assignment stage round; and

b

the date on which, and the times on that date within which, the assignment stage round will take place.

Submission of assignment stage form to OFCOM86

1

A bidder must submit the completed assignment stage form to OFCOM by using the electronic auction system, except as provided for in regulation 87.

2

The completed assignment stage form must be received by OFCOM by the time notified to bidders under regulation 85(b) as the end of the assignment stage round.

Alternative method for submission of assignment stage form87

1

Where OFCOM are satisfied that a bidder is unable to submit an assignment stage form by using the electronic auction system because of technical failure (or an event or circumstance with similar effect on the bidder's ability to use the electronic auction system), OFCOM shall notify the bidder of an alternative method of submitting the assignment stage form and any requirements relating to the authentication of communications made by means of the alternative method.

2

The bidder must submit the assignment stage form by means of the alternative method and must comply with any requirements which have been notified to it under paragraph (1) relating to the authentication of communications.

Incomplete or defective assignment stage form88

1

Where, due to the manner of completion, an assignment stage form is incomplete or defective but OFCOM believe that they can ascertain the bidder's intention in relation to the making of assignment stage bids, OFCOM shall ask the bidder to confirm in a notice to OFCOM by a deadline specified by OFCOM that OFCOM have correctly ascertained the bidder's intention in relation to the making of assignment stage bids.

2

Where the bidder confirms in a notice given to OFCOM by the deadline which is signed by two authorised persons that OFCOM have correctly ascertained the bidder's intention, the assignment stage form in its entirety shall be accepted by OFCOM on that basis.

3

Where the bidder does not give such confirmation, the assignment stage form in its entirety shall be rejected by OFCOM and none of the assignment stage bids made on that assignment stage form shall be valid, and regulation 74(5) or regulation 80(5) shall apply.

where the pre-existing licence holder does not win any additional 3.4 GHz lots in the principal stage, the amount which is the pre-existing licence holder's 3.4 GHz additional price; or

b

where the pre-existing licence holder won additional 3.4 GHz lots in the principal stage, zero pounds.

Particular frequencies to be included in 2.3 GHz licences and 2.3 GHz withdrawn lot licences99

1

Where a winning bidder won 2.3 GHz lots in accordance with either regulation 38 or 39 (but not both), any 2.3 GHz licence or 2.3 GHz withdrawn lot licence granted to that bidder shall authorise the use of the frequencies corresponding to the 2.3 GHz assignment stage option for which the bidder made the winning 2.3 GHz assignment stage bid (“2.3 GHz winning option”).

2

Where a winning bidder won 2.3 GHz lots in accordance with both regulations 38 and 39—

a

the 2.3 GHz licence granted to that bidder shall authorise the use of the frequencies corresponding to the block which—

i

includes such number of lots as won in accordance with regulation 38; and

ii

comprises the higher frequencies included in that bidder's 2.3 GHz winning option; and

b

the 2.3 GHz withdrawn lot licence granted to that bidder shall authorise the use of the frequencies corresponding to the block which—

i

includes such number of lots as won in accordance with regulation 39; and

ii

comprises the lower frequencies included in that bidder's 2.3 GHz winning option.

Particular frequencies to be included in 3.4 GHz licences and 3.4 GHz withdrawn lot licences granted to a winning bidder where the pre-existing licence holder is not a bidder or where the pre-existing licence holder is a bidder but did not apply for a replacement licence100

1

This regulation applies in respect of the grant of a 3.4 GHz licence or a 3.4 GHz withdrawn lot licence to—

a

each winning bidder for 3.4 GHz lots other than the pre-existing licence holder; and

b

where it is a bidder and did not apply for a replacement licence but makes one or more winning principal stage bids for 3.4 GHz lots, the pre-existing licence holder.

2

Where a winning bidder to which this regulation applies won 3.4 GHz lots in accordance with either regulation 38 or 40 (but not both), any 3.4 GHz licence or 3.4 GHz withdrawn lot licence granted to that bidder shall authorise the use of the frequencies corresponding to the 3.4 GHz assignment stage option for which the bidder made the winning 3.4 GHz assignment stage bid (“3.4 GHz winning option”).

3

the amount which is the total auction sum payable by that bidder to OFCOM; and

ii

the amount the bidder has on deposit.

3

Where—

a

the pre-existing licence holder applies for a replacement licence; and

b

following the passing of the deadline under regulation 106, the amount of the deposit of the pre-existing licence holder remains less than the total auction sum payable by the pre-existing licence holder to OFCOM,

the pre-existing licence holder will remain entitled to the grant of a replacement licence (but no other licence) under these Regulations.

Grant of licences108

The licences referred to in regulation 107(1) are—

a

where the winning bidder won 2.3 GHz lots in accordance with regulation 38, a 2.3 GHz licence which authorises the use of the frequencies determined in accordance with regulation 99;

b

where the winning bidder won 2.3 GHz lots in accordance with regulation 39 (following the withdrawal of standing high bid status) and has indicated that it wishes to accept a 2.3 GHz withdrawn lot licence, a 2.3 GHz withdrawn lot licence which authorises the use of the frequencies determined in accordance with regulation 99;

c

where the winning bidder won 3.4 GHz lots in accordance with regulation 38, a 3.4 GHz licence which authorises the use of the frequencies determined in accordance with regulation 100 or 101;

d

where the winning bidder won 3.4 GHz lots in accordance with regulation 40 (following the withdrawal of standing high bid status) and has indicated that it wishes to accept a 3.4 GHz withdrawn lot licence, a 3.4 GHz withdrawn lot licence which authorises the use of the frequencies determined in accordance with regulation 100 or 101; and

e

where the winning bidder concerned is the pre-existing licence holder, and the pre-existing licence holder did apply for a replacement licence, a replacement licence which authorises the use of the frequencies determined in accordance with regulation 101.

the frequencies in respect of which, if they held on deposit an amount equal to the total auction sum, licences would have been granted; and

ii

the total auction sum payable to OFCOM; and

d

details of all valid principal stage bids, valid withdrawals of standing high bid status, valid assignment stage bids made by each bidder, and occurrences of an eligibility event in respect of each bidder.

PART 9Activity rules

Forfeit of deposit and exclusion from award process112

If, in relation to an applicant which is qualified to bid or a bidder, OFCOM are satisfied that any of the events set out in regulation 115 are occurring (or have occurred) and that the occurrence would materially affect the outcome of the award process or would affect that bidder's 2.3 GHz bid limit or overall bid constraint—

a

any sum paid as a deposit under these Regulations shall be forfeited (together with any interest which has accrued on the deposit) by, and not refunded to, the applicant or bidder concerned; and

b

that applicant or bidder may also be excluded from the award process by OFCOM giving that applicant or bidder notice in writing.

Bids made by an excluded bidder113

1

Subject to regulation 114, where a bidder is excluded from the award process under regulation 112 during the principal stage, OFCOM shall determine whether it should disregard the bids (and other bidding indications made on its principal stage form) made in any principal stage rounds prior to the exclusion, in order to have a fair and efficient outcome to the award process.

2

Where OFCOM determine that it is appropriate to disregard the bids (and other bidding indications) made in any principal stage rounds—

a

it shall notify bidders of the rounds for which it has determined to disregard the bids (and other bidding indications); and

b

resume the award process from the start of the principal stage round after the round for which bids are not disregarded under sub-paragraph (a), or, where all bids are to be disregarded under that sub-paragraph, to rerun the award process from the start of the first principal stage round.

3

Subject to regulation 114, where a bidder is excluded from the award process under regulation 112 during the assignment stage—

a

OFCOM shall determine whether it should disregard the bids (and other bidding indications) made in any principal stage round prior to the exclusion in accordance with paragraphs (1) and (2); and

b

all of the assignment stage bids made by the bidder shall not be taken into consideration for the purposes of determining—

i

the winning assignment stage bids under regulations 75 and 81;

ii

the additional price payable by a winning bidder under regulations 76 and 84.

Exclusion of the pre-existing licence holder114

1

Where the pre-existing licence holder applies for a replacement licence and is excluded from the award process under regulation 26(8) or 112 during the principal or assignment stage, OFCOM shall disregard the bids (and other bidding indications made on its principal stage form) made in all principal and assignment stage rounds and rerun the award process from the start of the first principal stage round.

2

Where OFCOM reruns the award process from the start of the first principal stage round in accordance with paragraph (1) above, the pre-existing licence holder shall not participate in the principal stage or the assignment stage of that award process and shall be deemed to have not applied for a replacement licence in that award process.

3

Where a pre-existing licence holder has applied for a replacement licence but is excluded from the award process under these Regulations, OFCOM will notify the other bidders of that fact.

4

Where this paragraph applies, OFCOM shall—

a

determine the rounds for which bids (and other bidding indications) made in those rounds should be disregarded in order to have a fair and efficient outcome to the award process;

b

take reasonable steps to notify bidders of its determinations under paragraph (3) and sub-paragraph (a); and

c

resume the award process from the end of the latest round for which bids (and other bidding indications) are not disregarded under sub-paragraph (a), or, where all bids (and other bidding indications) are to be disregarded under that sub-paragraph, to rerun the award process from the start of the first principal stage round.

Refunds121

OFCOM may, in such cases as they think fit, refund, in whole or in part, sums which have been paid to them in accordance with any provision of these Regulations.

Deposits122

In determining under these Regulations the amount that an applicant or bidder has on deposit OFCOM shall disregard any sum forfeited under these Regulations and any interest which may have accrued on any deposit.

Philip Marnick Group Director, Spectrum Group For and by authority of the Office of Communications

SCHEDULE 1Lots

Regulations 2(2), 2(3), 2(4) and 2(5)

In these Regulations—

a

“2.3 GHz lot” means any of the four numbered 2.3 GHz lots listed in Column (1) of Table 1 comprising the frequencies listed in the corresponding entry in Column (2) of the same table;

b

“3.4 GHz lot” means any of the thirty-eight 3.4 GHz lots listed in Column (1) of Table 2 comprising the frequencies listed in the corresponding entry in Column (2) of the same table;

c

“lot” means a 2.3 GHz lot or a 3.4 GHz lot;

d

a reference to “lot type” shall be construed as a reference to either of the two different lot types in paragraphs (a) and (b);

e

a reference to a numbered 2.3 GHz lot or a numbered 3.4 GHz lot means the lot with that number in Column (1) of Table 1 or Table 2 (as the case may be);

f

a reference to a “block” of numbered 2.3 GHz lots or numbered 3.4 GHz lots is to be construed as a reference to a block of sequentially numbered lots;

g

a reference to the “lower 3.4 GHz frequency range” shall be construed as a reference to the block of 3.4 GHz lots numbered 1 to 14 listed in Column (1) of Table 2 comprising the frequencies listed in the corresponding entry in Column (2) of the same table; and

h

a reference to the “upper 3.4 GHz frequency range” shall be construed as a reference to the block of 3.4 GHz lots numbered 19 to 34 listed in Column (1) of Table 2 comprising the frequencies listed in the corresponding entry in Column (2) of the same table.

Table 1

Column 12.3 GHz lots	Column 2Frequencies (MHz)
2.3 GHz lot 1	2350–2360
2.3 GHz lot 2	2360–2370
2.3 GHz lot 3	2370–2380
2.3 GHz lot 4	2380–2390

Table 2

Column 13.4 GHz lots	Column 2Frequencies (MHz)
3.4 GHz lot 1	3410–3415
3.4 GHz lot 2	3415–3420
3.4 GHz lot 3	3420–3425
3.4 GHz lot 4	3425–3430
3.4 GHz lot 5	3430–3435
3.4 GHz lot 6	3435–3440
3.4 GHz lot 7	3440–3445
3.4 GHz lot 8	3445–3450
3.4 GHz lot 9	3450–3455
3.4 GHz lot 10	3455–3460
3.4 GHz lot 11	3460–3465
3.4 GHz lot 12	3465–3470
3.4 GHz lot 13	3470–3475
3.4 GHz lot 14	3475–3480
3.4 GHz lot 15	3480–3485
3.4 GHz lot 16	3485–3490
3.4 GHz lot 17	3490–3495
3.4 GHz lot 18	3495–3500
3.4 GHz lot 19	3500–3505
3.4 GHz lot 20	3505–3510
3.4 GHz lot 21	3510–3515
3.4 GHz lot 22	3515–3520
3.4 GHz lot 23	3520–3525
3.4 GHz lot 24	3525–3530
3.4 GHz lot 25	3530–3535
3.4 GHz lot 26	3535–3540
3.4 GHz lot 27	3540–3545
3.4 GHz lot 28	3545–3550
3.4 GHz lot 29	3550–3555
3.4 GHz lot 30	3555–3560
3.4 GHz lot 31	3560–3565
3.4 GHz lot 32	3565–3570
3.4 GHz lot 33	3570–3575
3.4 GHz lot 34	3575–3580
3.4 GHz lot 35	3580–3585
3.4 GHz lot 36	3585–3590
3.4 GHz lot 37	3590–3595
3.4 GHz lot 38	3595–3600

SCHEDULE 2Application form and warranty

Regulation 4

1. Details of the applicant

Provide the following details for the applicant—

Applicant's full name

Registered number of company

Registered office of company

Bank sort code and account number

Name of individual contact within applicant

Contact address (if different from registered office)

Contact telephone number

Contact mobile telephone number

Contact fax number

Contact electronic mail address

2. Authorised persons

Provide details of the name and position in the applicant of at least three and no more than five persons, each of whom has authority to bind the applicant for all purposes relating to the award process. Also provide a specimen signature of each of these persons.

3. Directors or members of managing body

Provide the name and job title of each of the directors of the applicant or each of the members of the managing body of the applicant.

4. Applicant group

Provide the names of the applicant's associates (as defined in the Wireless Telegraphy (Licence Award) Regulations 2018 (“the Regulations”)) and for each provide details of their material interest (as defined in the Regulations) in the applicant.

Provide the names of all other members of the applicant group (as defined in the Regulations) in respect of which the applicant has completed a document in the form set out in Schedule 3 to the Regulations in accordance with regulation 4(3)(a)(ii) of the Regulations.

5. Qualification to bid

In relation to the determination by the Office of Communications (“OFCOM”) under regulation 12 of the Regulations—

a

provide details of any reason why the applicant may not be a fit and proper person to hold a licence;

b

state whether any member of the applicant's applicant group has colluded, or attempted to collude, or is colluding or attempting to collude, with another person to distort the outcome of the award process and provide a description of any such collusion;

c

state whether any member of the applicant's applicant group has acted or is acting in a way which is likely to distort the outcome of the award process and provide a description of any such actions;

d

state whether any member of the applicant's applicant group, or any person to whom confidential information has been disclosed, has disclosed, or is disclosing or attempting to disclose or has incited or is inciting another person to disclose, any confidential information, whether directly or indirectly, to any person, and provide a description of the circumstances of any disclosure and the information disclosed, except where the disclosure—

i

is or was to a member of the applicant's applicant group;

ii

is or was to OFCOM;

iii

is or was to a provider of finance for the purpose of raising finance for the applicant's application; or

iv

is or was to a person for the purpose of enabling that person to decide whether to participate as a member of the applicant's bidder group;

e

state whether any member of the applicant's applicant group has obtained or is obtaining or attempting to obtain confidential information relating to another applicant and provide a description of any such circumstances;

f

state whether any member of the applicant's applicant group is receiving or is attempting to receive services in relation to the award process from any person who has provided or is providing services to OFCOM in relation to the award process and provide a description of the services concerned; and

g

state whether (and provide a description of any circumstances in which) any person who is a member or a director or employee of a member of the applicant's applicant group and also a director or employee of a member of another applicant group is—

i

taking part in the preparation of both applicant groups for participation in the award process; or

ii

receiving confidential information relating to both applicant groups.

6. Other information

Provide a brief description of the substance of—

a

agreements (if any) relating to the management of the applicant; and

b

any criminal investigations or proceedings in the United Kingdom or overseas of which the applicant is aware relating to the applicant or any member of its applicant group or its directors or officers.

7. Existing spectrum holdings

Confirm that the applicant has provided the details of existing spectrum holdings required under regulation 4(3)(a)(iii) of the Regulations.

8. Warranty

Provide the following warranty—

“[Insert name of applicant] (the “applicant”) represents and warrants to the Office of Communications that—

a
the persons authorised in section 2 of this application have read and understood the Regulations, the terms of the licences to be granted under the Regulations, and the Wireless Telegraphy Act 2006;
b
the applicant has the legal authority to participate in the award process under the Regulations and to have a licence granted to it, and has in place all necessary consents, permissions and internal approvals for this purpose;
c
the information provided in, or in support of, the application is, to the best of the knowledge and belief of the applicant true, accurate and complete in all material respects; and
d
the applicant is aware of the provisions in regulations 112 and 115 of the Regulations, including the provisions about disclosure of confidential information (as defined in the Regulations) and obtaining confidential information relating to another applicant or bidder and that any such activities may lead to forfeiture of sums on deposit and exclusion from the award process.”

9. 3.4 GHz minimum requirement selection

Specify a 3.4GHz minimum requirement selection: select one (and only one) of the following options—

— a minimum requirement of two 3.4 GHz lots;
— a minimum requirement of three 3.4 GHz lots;
— a minimum requirement of four 3.4 GHz lots; or
— no minimum requirement.

SCHEDULE 3Document for member of applicant's applicant group or bidder group who is not an associate

Regulation 4

[Insert name of applicant or bidder] (the “applicant/bidder”) wishes to include [insert name and address of person to be included in applicant or bidder group who is not an associate] as a member of the applicant/bidder's applicant or bidder group as defined in the Wireless Telegraphy (Licence Award) Regulations 2018 (“the Regulations”) for the purpose of the award process under the Regulations.

Under regulation 13 of the Regulations an applicant shall not be qualified to bid in the award process where a member of its bidder group is also a member of another applicant's bidder group. Regulations 112 and 115 contain provisions on disclosure of confidential information (as defined in the Regulations) and obtaining confidential information relating to another applicant or bidder. Under the Regulations such activities may lead to forfeiture of sums on deposit and exclusion from the award process.

Applicant/bidder

In relation to regulations 13, 112 and 115 of the Regulations, the applicant/bidder represents and warrants to the Office of Communications (“OFCOM”) that so far as it is aware, having made all reasonable enquiries, [insert name of person to be included in applicant or bidder group who is not an associate] is not a member of any other applicant's or bidder's applicant or bidder group.

The applicant/bidder undertakes to inform OFCOM immediately if it becomes aware that [insert name of person to be included in applicant or bidder group who is not an associate]—

a

has ever been or becomes a member of any other applicant's or bidder's applicant or bidder group;

b

has ever been or becomes a subsidiary of a member of any other applicant's or bidder's applicant or bidder group during the award process; or

c

has ever obtained or ever obtains confidential information (as defined in the Regulations) relating to another applicant or bidder.

[Insert name of person to be included in applicant or bidder group who is not an associate]

[Insert name of person to be included in applicant or bidder group who is not an associate] represents and warrants to OFCOM that it—

a

consents to be a member of the applicant/bidder's applicant or bidder group;

b

is not a member of any other applicant's or bidder's applicant or bidder group; and

c

is aware of the provisions in regulations 112 and 115 of the Regulations about disclosure of confidential information (as defined in the Regulations) and obtaining confidential information relating to another applicant or bidder.

[Insert name of person to be included in applicant or bidder group who is not an associate] undertakes to OFCOM that it will immediately inform OFCOM and the applicant/bidder—

a

if it has ever been or becomes a member of any other applicant's or bidder's applicant or bidder group;

b

if it has ever been or becomes a subsidiary of a member of any other applicant's or bidder's applicant or bidder group during the award process; or

c

if it has ever obtained or if it ever obtains confidential information (as defined in the Regulations) relating to another applicant or bidder.

SCHEDULE 4Declaration to be made by the pre-existing licence holder

Regulation 7

UK Broadband Limited hereby consents to the revocation of the pre-existing licence, as defined in The Wireless Telegraphy (Licence Award) Regulations 2018 (the “Regulations”), upon OFCOM granting a replacement licence, as defined in the Regulations, for a block of eight 3.4 GHz lots to UK Broadband Limited in accordance with the Regulations.

[signed by UK Broadband Limited]

SCHEDULE 5Determination of 2.3 GHz additional price

Regulation 76

Additional price1

1

OFCOM shall determine an additional price for each winning 2.3 GHz assignment stage bid by imposition of the requirements that the additional prices must satisfy that are set out in paragraphs 2 to 5.

2

Where an additional price so determined includes a fraction of a pound, the additional price shall be that price rounded up to the nearest whole pound.

First requirement2

The additional price for each winning 2.3 GHz assignment stage bid shall be no less than zero and no more than the amount of that winning 2.3 GHz assignment stage bid.

Second requirement3

1

Taking the additional prices for the winning 2.3 GHz assignment stage bids together, the additional prices shall be such that if—

a

the amount bid by each winning bidder for the 2.3 GHz assignment stage option selected in its winning 2.3 GHz assignment stage bid had been the additional price rather than the amount of its winning 2.3 GHz assignment stage bid (“reduced winning 2.3 GHz assignment stage bid”), and

b

subject to sub-paragraph (2), the amount bid by each winning bidder in respect of each other valid 2.3 GHz assignment stage bid made by that bidder had been reduced by an amount equal to the difference between the amount of its winning 2.3 GHz assignment stage bid and the additional price for that relevant winning 2.3 GHz assignment stage bid,

the combination of the reduced winning 2.3 GHz assignment stage bids submitted by the winning bidders would have been the valid combination of 2.3 GHz assignment stage bids or one of the valid combinations of 2.3 GHz assignment stage bids (as the case may be) having the highest total value of amounts bid.

2

Where the amount of a bid has been reduced in accordance with sub-paragraph (1)(b) and is less than zero, the amount of that bid shall be treated as if it were zero for the purposes of this paragraph.

3

The bids mentioned in sub-paragraphs (1)(a) and (1)(b) shall, after reduction of the amount of those bids in accordance with those paragraphs, be treated as valid 2.3 GHz assignment stage bids for the purposes of this paragraph.

Third requirement4

Taking the additional prices for the winning 2.3 GHz assignment stage bids together, the total of those additional prices shall be no greater than the total of any other prices for the winning 2.3 GHz assignment stage bids that satisfy the requirements set out in paragraphs 2 and 3.

Fourth requirement5

1

Taking the additional prices for the winning 2.3 GHz assignment stage bids together, the opportunity cost variance of those additional prices calculated in accordance with sub-paragraph (2) shall be less than the opportunity cost variance, calculated in accordance with sub-paragraph (2), of any other prices for the winning 2.3 GHz assignment stage bids that satisfy the requirements set out in paragraphs 2 to 4.

2

The opportunity cost variance (“OCV_A”) of prices mentioned in sub-paragraph (1) is the amount calculated in accordance with the formula OCV_A= ∑(p_A-c_A)²where—

a

“p_A” is the price for a winning 2.3 GHz assignment stage bid; and

b

“c_A” is the amount calculated in accordance with the formula set out in sub-paragraph (3) in respect of that winning 2.3 GHz assignment stage bid.

3

The formula is c_A= u_A-t_A+b_Awhere—

a

“u_A” is the amount calculated in accordance with sub-paragraph (4);

b

“t_A” is the total amount of the winning 2.3 GHz assignment stage bids; and

c

“b_A” is the amount of the winning 2.3 GHz assignment stage bid for which p_A is the price.

4

The amount calculated in accordance with this sub-paragraph is the total amount of the valid combination of 2.3 GHz assignment stage bids or one of the valid combinations of 2.3 GHz assignment stage bids (as the case may be) having the highest total value of amounts bid where, for each 2.3 GHz assignment stage bid made by the winning bidder that submitted the winning 2.3 GHz assignment stage bid for which p_A is the price, the amount of that 2.3 GHz assignment stage bid is treated as if it were zero for the purposes of this sub-paragraph.

5

Where the amount of a 2.3 GHz assignment stage bid is treated as if it were zero in accordance with sub-paragraph (4), that 2.3 GHz assignment stage bid shall be treated as a valid 2.3 GHz assignment stage bid for the purposes of that sub-paragraph.

Interpretation6

In this Schedule “valid combination of 2.3 GHz assignment stage bids” shall be construed in accordance with regulation 75.

SCHEDULE 6Determination of 3.4 GHz additional price

Regulation 84

Additional price1

1

OFCOM shall determine an additional price for each winning 3.4 GHz assignment stage bid by imposition of the requirements that the additional prices must satisfy that are set out in paragraphs 2 to 5.

2

Where an additional price so determined includes a fraction of a pound, the additional price shall be that price rounded up to the nearest whole pound.

First requirement2

The additional price for each winning 3.4 GHz assignment stage bid shall be no less than zero and no more than the amount of that winning 3.4 GHz assignment stage bid.

Second requirement3

1

Taking the additional prices for the winning 3.4 GHz assignment stage bids together, the additional prices shall be such that if—

a

the amount bid by each winning bidder for the 3.4 GHz assignment stage option selected in its winning 3.4 GHz assignment stage bid had been the additional price rather than the amount of its winning 3.4 GHz assignment stage bid (“reduced winning 3.4 GHz assignment stage bid”), and

b

subject to sub-paragraph (2), the amount bid by each winning bidder in respect of each other valid 3.4 GHz assignment stage bid made by that bidder had been reduced by an amount equal to the difference between the amount of its winning 3.4 GHz assignment stage bid and the additional price for that relevant winning 3.4 GHz assignment stage bid,

the combination of the reduced winning 3.4 GHz assignment stage bids submitted by the winning bidders would have been the valid combination of 3.4 GHz assignment stage bids or one of the valid combinations of 3.4 GHz assignment stage bids (as the case may be) having the highest total value of amounts bid.

2

3

The bids mentioned in sub-paragraphs (1)(a) and (1)(b) shall, after reduction of the amount of those bids in accordance with those paragraphs, be treated as valid 3.4 GHz assignment stage bids for the purposes of this paragraph.

Third requirement4

Taking the additional prices for the winning 3.4 GHz assignment stage bids together, the total of those additional prices shall be no greater than the total of any other prices for the winning 3.4 GHz assignment stage bids that satisfy the requirements set out in paragraphs 2 and 3.

Fourth requirement5

1

Taking the additional prices for the winning 3.4 GHz assignment stage bids together, the opportunity cost variance of those additional prices calculated in accordance with sub-paragraph (2) shall be less than the opportunity cost variance, calculated in accordance with sub-paragraph (2), of any other prices for the winning 3.4 GHz assignment stage bids that satisfy the requirements set out in paragraphs 2 to 4.

2

The opportunity cost variance (“OCV_A”) of prices mentioned in sub-paragraph (1) is the amount calculated in accordance with the formula OCV_A= ∑(p_A-c_A)²where—

a

“p_A” is the price for a winning 3.4 GHz assignment stage bid; and

b

“c_A” is the amount calculated in accordance with the formula set out in sub-paragraph (3) in respect of that winning 3.4 GHz assignment stage bid.

3

The formula is c_A= u_A-t_A+b_Awhere—

a

“u_A” is the amount calculated in accordance with sub-paragraph (4);

b

“t_A” is the total amount of the winning 3.4 GHz assignment stage bids; and

c

“b_A” is the amount of the winning 3.4 GHz assignment stage bid for which p_A is the price.

4

The amount calculated in accordance with this sub-paragraph is the total amount of the valid combination of 3.4 GHz assignment stage bids or one of the valid combinations of 3.4 GHz assignment stage bids (as the case may be) having the highest total value of amounts bid where, for each 3.4 GHz assignment stage bid made by the winning bidder that submitted the winning 3.4 GHz assignment stage bid for which p_A is the price, the amount of that 3.4 GHz assignment stage bid is treated as if it were zero for the purposes of this sub-paragraph.

5

Where the amount of a 3.4 GHz assignment stage bid is treated as if it were zero in accordance with sub-paragraph (4), that 3.4 GHz assignment stage bid shall be treated as a valid 3.4 GHz assignment stage bid for the purposes of that sub-paragraph.

Interpretation6

In this Schedule “valid combination of 3.4 GHz assignment stage bids” shall be construed in accordance with regulation 81.

SCHEDULE 7Frequency bands for existing immediately useable spectrum holdings

Regulation 5

Frequency bands
791 to 821 MHz 832 to 862 MHz 880.1 to 914.9 MHz 925.1 to 959.9 MHz 1452 to 1492 MHz 1710.1 to 1781.7 MHz 1805.1 to 1876.7 MHz 1920.0 to 1979.7 MHz 2110.3 to 2169.7 MHz 2500 to 2570 MHz 2575 to 2595 MHz 2600 to 2615 MHz 2620 to 2690 MHz

SCHEDULE 8Frequency bands for existing overall spectrum holdings

Regulation 5

Frequency bands
791 to 821 MHz 832 to 862 MHz 880.1 to 914.9 MHz 925.1 to 959.9 MHz 1452 to 1492 MHz 1710.1 to 1781.7 MHz 1805.1 to 1876.7 MHz 1920.0 to 1979.7 MHz 2110.3 to 2169.7 MHz 2500 to 2570 MHz 2575 to 2595 MHz 2600 to 2615 MHz 2620 to 2690 MHz 3480-3500 MHz 3580-3600 MHz

(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.