Attachment B

700 MHz and 2.5 GHz lot configuration scenarios

As part of the process of preparing for the auction of digital dividend spectrum (including spectrum in the 700 MHz and 2.5 GHz band), the ACMA is considering how spectrum subject to reallocation will be divided into lots for sale. Lots will be defined by a geographic ‘market area’ and a particular bandwidth (for example, one lot might be a national 5 MHz lot covering all of Australia). The process of dividing spectrum for sale into lots according to frequency and geographic area is referred to as ‘lot configuration’.

The ACMA is seeking views from stakeholders as to the most appropriate lot configuration for the digital dividend auction.

The ACMA has developed a series of configuration scenarios to illustrate some examples of different ways the spectrum could be packaged for sale.

Please note that the scenarios presented are not an exhaustive list, and should not be taken to represent an ACMA view as to its preferred configuration. They simply represent some of the possible configuration options open to the ACMA to be used, as the basis for discussion and feedback from stakeholders.

The examples provided here are based on frequency blocks of 2x5 MHz paired in the 700 MHz band and blocks of 2x10 MHz paired in the 2.5 GHz band. These examples are used to illustrate the different types of options the ACMA could explore. However, the ACMA would welcome any comments or suggestions stakeholders have as to the most appropriate bandwidth selection for each band.

Scenario
1 / Option 1 – National lots for all of Australia
2 / Option 2 – Metropolitan, regional and remote lots
3 / Option 3 - Aggregated metro and regional lots option:

Attachment B

Option 1 – National lots for all of Australia

Geographic market areas

This option consists of a single geographic area covering all of Australia. Under this option, a spectrum licensee could deploy networks anywhere in Australia.

Minimum frequency 700 MHz band

If the minimum frequency of each lot in the 700 MHz band consisted of 5 MHz paired lots in the 700 MHz band, there would be a total of nine 5 MHz paired lots, offered nationally.This would take the following format:

National
lot / A / B / C / D / E / F / G / H / I / Mid-band gap
(not on offer) / A / B / C / D / E / F / G / H / I

Minimum frequency 2.5 GHz band

If the minimum frequency of each lot in the 2.5 GHz band consisted of 10 MHz paired lots, there would be a total of seven paired 10 MHz lots, offered nationally. This is detailed below:

National
lot / A / B / C / D / E / F / G / Mid-band gap
(not on offer) / A / B / C / D / E / F / G

Attachment B

Option 2 – Metropolitan, regional and remote lots

Geographic market areas

This option consists of disaggregatedgeographic areas based on the population density of Australia. Metropolitan geographic areas would cover metropolitan areas mostly restricted to capital cities; regional geographic areas would cover the more densely settled regional areas of Eastern Australia, from Queensland to South Australia, and the south-west corner of Western Australia excluding Perth. The remaining remote geographic area would be offered as one remote geographic area.

The boundaries of geographic areaswould need to be flexible to avoid boundaries in populated metropolitan and regional city areas.The boundaries of each lot in Option 2 are indicative of where the actual geographic boundary will be imposed.Depending on feedback from this consultation process, the ACMA may conduct further research on the exact location of these geographic boundaries (in order to avoid areas of high population).

Minimum frequency 700MHz band

If the minimum frequency of each lot in the 700MHz band consisted of 5 MHz paired lots, there would be a total of 99 paired lots on offer. This is detailed below:

Metro Perth / A1 / B1 / C1 / D1 / E1 / F1 / G1 / H1 / I1 / Mid-band gap
(not on offer) / A1 / B1 / C1 / D1 / E1 / F1 / G1 / H1 / I1
Metro Darwin / A2 / B2 / C2 / D2 / E2 / F2 / G2 / H2 / I2 / A2 / B2 / C2 / D2 / E2 / F2 / G2 / H2 / I2
Metro Adelaide / A3 / B3 / C3 / D3 / E3 / F3 / G3 / H3 / I3 / A3 / B3 / C3 / D3 / E3 / F3 / G3 / H3 / I3
Metro Brisbane / A4 / B4 / C4 / D4 / E4 / F4 / G4 / H4 / I4 / A4 / B4 / C4 / D4 / E4 / F4 / G4 / H4 / I4
Metro Sydney / A5 / B5 / C5 / D5 / E5 / F5 / G5 / H5 / I5 / A5 / B5 / C5 / D5 / E5 / F5 / G5 / H5 / I5
Metro ACT / A6 / B6 / C6 / D6 / E6 / F6 / G6 / H6 / I6 / A6 / B6 / C6 / D6 / E6 / F6 / G6 / H6 / I6
Metro Melbourne / A7 / B7 / C7 / D7 / E7 / F7 / G7 / H7 / I7 / A7 / B7 / C7 / D7 / E7 / F7 / G7 / H7 / I7
Metro Hobart / A8 / B8 / C8 / D8 / E8 / F8 / G8 / H8 / I8 / A8 / B8 / C8 / D8 / E8 / F8 / G8 / H8 / I8
Regional East Aust / A9 / B9 / C9 / D9 / E9 / F9 / G9 / H9 / I9 / A9 / B9 / C9 / D9 / E9 / F9 / G9 / H9 / I9
Regional West Aust / A10 / B10 / C10 / D10 / E10 / F10 / G10 / H10 / I10 / A10 / B10 / C10 / D10 / E10 / F10 / G10 / H10 / I10
Remote Aust / A11 / B11 / C11 / D11 / E11 / F11 / G11 / H11 / I11 / A11 / B11 / C11 / D11 / E11 / F11 / G11 / H11 / I11

Minimum frequency 2.5 GHz band

If the minimum frequency of each lot in the 2.5 GHz band consisted of 10 MHz paired lots, there would be 77 paired 10 MHz lots. This would take the following format:

10 MHz paired lots option

Metro Perth / A1 / B1 / C1 / D1 / E1 / F1 / G1 / Mid-band gap
(not on offer) / A1 / B1 / C1 / D1 / E1 / F1 / G1
Metro Darwin / A2 / B2 / C2 / D2 / E2 / F2 / G2 / A2 / B2 / C2 / D2 / E2 / F2 / G2
Metro Adelaide / A3 / B3 / C3 / D3 / E3 / F3 / G3 / A3 / B3 / C3 / D3 / E3 / F3 / G3
Metro Brisbane / A4 / B4 / C4 / D4 / E4 / F4 / G4 / A4 / B4 / C4 / D4 / E4 / F4 / G4
Metro Sydney / A5 / B5 / C5 / D5 / E5 / F5 / G5 / A5 / B5 / C5 / D5 / E5 / F5 / G5
Metro ACT / A6 / B6 / C6 / D6 / E6 / F6 / G6 / A6 / B6 / C6 / D6 / E6 / F6 / G6
Metro Melb / A7 / B7 / C7 / D7 / E7 / F7 / G7 / A7 / B7 / C7 / D7 / E7 / F7 / G7
Metro Hobart / A8 / B8 / C8 / D8 / E8 / F8 / G8 / A8 / B8 / C8 / D8 / E8 / F8 / G8
Regional East Aust / A9 / B9 / C9 / D9 / E9 / F9 / G9 / A9 / B9 / C9 / D9 / E9 / F9 / G9
Regional West Aust / A10 / B10 / C10 / D10 / E10 / F10 / G10 / A10 / B10 / C10 / D10 / E10 / F10 / G10
Remote Aust / A11 / B11 / C11 / D11 / E11 / F11 / G11 / A11 / B11 / C11 / D11 / E11 / F11 / G11

Attachment B

Option 3 - Aggregated metro and regional lots option:

Geographic Market Area

Another option, which could be applied to either 700MHz or 2.5 GHz band, would be to aggregate all the metropolitan and regional geographic areas, and offer these areas asone geographic area. The one metropolitan/ regionalgeographic area would consist of Perth, Darwin, Adelaide, Brisbane, Sydney, ACT, Melbourne and Hobart, as well as Regional Eastern Australia, and Regional Western Australia.

The boundaries of geographic areaswould need to be flexible to avoid boundaries in populated metropolitan and regional city areas. The boundaries of each lot in Option 3 are indicative of where the actual geographic boundary will be imposed. Depending on feedback from this consultation process, the ACMA may conduct further research on the exact location of these geographic boundaries (in order to avoid areas of high population).

Minimum frequency 700MHz band

If this option was used to configure lots in the 700 MHz band, with a minimum bandwidth of 5 MHz paired lots, a total of 18 paired lots would be offered. This is detailed below:

Metro/ Regional Aust / A1 / B1 / C1 / D1 / E1 / F1 / G1 / H1 / I1 / Mid-band gap
(not on offer) / A1 / B1 / C1 / D1 / E1 / F1 / G1 / H1 / I1
Remote Aust / A2 / B2 / C2 / D2 / E2 / F2 / G2 / H2 / I2 / A2 / B2 / C2 / D2 / E2 / F2 / G2 / H2 / I2

Minimum frequency 2.5 GHz band

If this option was used to configure lots in the 2.5 GHz band, with a minimum bandwidth of 10 MHz paired lots, a total of 14 paired lots would be offered. This would take the following format:

All Metro/ Regional Aust / A1 / B1 / C1 / D1 / E1 / F1 / G1 / Mid-band gap
(not on offer) / A1 / B1 / C1 / D1 / E1 / F1 / G1
Remote Aust / A2 / B2 / C2 / D2 / E2 / F2 / G2 / A2 / B2 / C2 / D2 / E2 / F2 / G2