The Wireless Telegraphy (Licence Award) Regulations 2012 No. 2817

PART 4 BIDDING PROCEDURE

CHAPTER 5 The supplementary bids round

Supplementary bid selection

42.  A bid made during the supplementary bids round (“supplementary bid”) shall be a bid for a selection of lots which matches a permissible bid selection for that bidder.

Supplementary bids

43.—(1) In order to make a supplementary bid a bidder must, on a form provided to the bidder by OFCOM (“supplementary bids form”), specify—

(a) the number of 800 MHz paired frequency lots it wishes to be included in a licence;

(b) the number of 2.6 GHz paired frequency lots it wishes to be included in a licence;

(c) the number of 2.6 GHz individual frequency lots it wishes to be included in a licence;

(d) if it wishes the 800 MHz coverage obligation lot to be included in a licence;

(e) if it wishes a 2.6 GHz concurrent low power 10 MHz lot to be included in a licence;

(f) if it wishes a 2.6 GHz concurrent low power 20 MHz lot to be included in a licence; and

(g) the amount in whole thousands of pounds that it is willing to pay for a licence which authorises the use of frequencies corresponding to the lots that are selected.

(2) The selection of lots specified in a supplementary bid made by a bidder must be such that the number of eligibility points associated with the supplementary bid in accordance with paragraph (3) does not exceed the bidder’s eligibility limit for the first primary bid round.

(3) The number of eligibility points associated with a supplementary bid shall be the number equal to the total of the eligibility points associated with the lots included in the selection of lots specified in that supplementary bid.

(4) The selection of lots specified in a supplementary bid made by a bidder may be the same as or different from the selection of lots specified in any opt-in bid or any primary bid made by that bidder.

(5) The amount of the supplementary bid shall be determined by the bidder, subject to the restrictions in paragraph (6).

(6) The restrictions are—

(a) the amount of the supplementary bid must not be less than the total amount of the round prices in the first primary bid round for the lots included in the selection of lots specified in that bid;

(b) where the supplementary bid is for a selection of lots in respect of which the bidder has also made a primary bid, the amount of the supplementary bid must not be less than the amount of the highest primary bid made by the bidder for that selection of lots; and

(c) where—

(i) the bidder did not make a valid primary bid in the final primary bid round, or

(ii) the supplementary bid is for a selection of lots that is different from the selection of lots specified in the valid primary bid made by the bidder in the final primary bid round,

the amount of the supplementary bid must not be greater than the amount “” determined in accordance with paragraph (7).

(7) The amount “” referred to in paragraph (6)(c) shall be calculated in accordance with the formula—

where—

(a)

“” is the total amount of the round prices in the primary bid round referred to in paragraph (9) for the selection of lots specified in the supplementary bid;

(b)

“” is the amount determined in accordance with paragraph (8); and

(c)

“” is, where the bidder made a valid primary bid in the round referred to in paragraph (9), the amount of that valid primary bid, and is otherwise zero.

(8) The amount of B is—

(a) where the bidder made a valid primary bid in the round referred to in paragraph (9), the higher of—

(i) the amount of the highest valid opt-in bid (if any) or valid primary bid made by the bidder for the same selection of lots as was specified in that valid primary bid; and

(ii) the amount of the supplementary bid (if any) for the same selection of lots as was specified in that valid primary bid; or

(b) where the bidder did not make a valid primary bid in the round referred to in paragraph (9), zero.

(9) The primary bid round referred to is the latest primary bid round in which a primary bid made by the bidder for the selection of lots specified in the supplementary bid could have satisfied the restriction set out in regulation 25(8).

(10) A bidder may submit any number of supplementary bids in the supplementary bids round, up to a maximum of four thousand supplementary bids.

(11) A bidder must submit all of its supplementary bids on the same supplementary bids form.

(12) A bidder may not submit more than one supplementary bid for any particular selection of lots.

(13) A bidder is not required to submit a supplementary bid.

Valid supplementary bids

44.  A supplementary bid is a valid supplementary bid if the bidder complies with regulations 42, 43 and 61 in respect of that supplementary bid.