The Wireless Telegraphy (Licence Award) Regulations 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations set out the procedure that will apply to the grant of wireless telegraphy licences at frequencies which are set out in Schedule 1.

To apply, a body corporate must deliver the documents required by regulation 4(3) to the Office of Communications (“OFCOM”) on a day specified by OFCOM. The documents must give details of existing spectrum holdings of the applicant and others listed in regulation 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 9(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 (regulation 10(1)).

After giving applicants an opportunity to withdraw, OFCOM will determine the number of bidders (regulation 13), an additional deposit may be paid (regulation 14) 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 in the opt-in round and first primary round (regulation 15). A limit also applies in subsequent rounds (regulations 25(8) and 43(2)). OFCOM will record bidders’ spectrum holdings (regulation 16).

Under Part 4, the process for the award of licences consists of three stages.

The first stage, called the principal stage, involves one round for the submission of opt-in bids, one or more rounds for the submission of primary bids and one round for the submission of supplementary bids (Chapters 2 to 9 of Part 4).

Only certain opt-in bids may be made by a bidder, depending on the bidder’s recorded spectrum holdings (regulation 19). Opt-in selections and prices are set out in Schedule 2.

For primary bid rounds and the supplementary bids round bidding is limited to certain selections of lots (regulations 22, 25(1) and 42). OFCOM will prepare a permissible bid selection list for each bidder taking account of certain factors including the spectrum cap rule. The rule refers to bidders’ recorded spectrum holdings.

The winning principal stage bids are determined in accordance with regulation 67, and the price payable in respect of each winning principal stage bid in accordance with regulation 68.

The second stage, called the assignment stage, is the procedure set out in Chapters 10 to 14 of Part 4. This procedure determines the frequencies which will be assigned to each winning bidder. Some frequency assignments are pre-determined (Chapter 11 of Part 4) and others are to be determined through a further round of bidding (Chapters 12, 13 and 14 of Part 4).

The third stage, called the grant stage, is the procedure set out in Chapter 15 of Part 4. OFCOM will grant licences to winning bidders and refund any sums due to winning bidders (regulations 109 and 110).

If in relation to an applicant which is qualified to bid or a bidder, OFCOM are 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 and copies of the publication referred to on page 31 of these Regulations are available to the public from the OFCOM library at Riverside House, 2a Southwark Bridge Road, London SE1 9HA, telephone [phone] or on the OFCOM internet website at www.ofcom.org.uk. Copies of the impact assessment have also been placed in the libraries of the Houses of Parliament.