CHAPTER 9Deposits during and following the principal stage
Deposits during the principal stage
63.—(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 deposit
64.—(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.
(3) Where a bidder does not satisfy the requirements set out in paragraph (1)—
(a)OFCOM shall notify the bidder; and
(b)the bidder shall not be excluded from the award process, but may not make assignment stage bids and will be deemed to have made valid assignment stage bids with a value of zero pounds for its assignment stage options.