The Wireless Telegraphy (Licence Award) Regulations 2012

Fourth requirement

5.—(1) Taking the additional prices for the winning assignment stage bids for numbered 800 MHz paired frequency lots 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 assignment stage bids for numbered 800 MHz paired frequency lots that satisfy the requirements set out in paragraphs 2 to 4.

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

where—

(a)

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

(b)

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

(3) The formula is—

where—

(a)

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

(b)

“” is the total amount of the winning assignment stage bids for numbered 800 MHz paired frequency lots; and

(c)

“” is the amount of the winning assignment stage bid for which is the price.

(4) The amount calculated in accordance with this sub-paragraph is the total amount of the valid combination of assignment stage bids for numbered 800 MHz paired frequency lots or one of the valid combinations of assignment stage bids for numbered 800 MHz paired frequency lots (as the case may be) having the highest total value of amounts bid where, for each assignment stage bid for numbered 800 MHz paired frequency lots made by the winning bidder that submitted the winning assignment stage bid for which is the price, the amount of that assignment stage bid is treated as if it were zero for the purposes of this sub-paragraph.

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