Timing of digital dividend auction payments

Ministerial direction requires ACMA to issue notices to successful bidders for final payments in the second half of 2014.

The Minister for Broadband, Communications and the Digital Economy has issued a direction to the Australian Communications and Media Authority (ACMA) on the timing of final payments for spectrum licences won at the digital dividend auction.

Under this direction, ACMA is required to issue notices to successful bidders for final payments in the second half of 2014.

The minister’s decision to direct ACMA on the timing of final payments responds to industry concern about paying for both the reissue of expiring spectrum licences and spectrum licences won at the digital dividend auction within a short period of time.

Successful bidders were previously required to pay the balance of their bid shortly after the conclusion of the auction in mid-2013. The direction to ACMA brings the due date for payment closer to the commencement of spectrum licences.

The amended payment terms do not impact on the commencement date of spectrum licences issued as a result of the auction. It remains the government’s expectation that the spectrum in the digital dividend band will be cleared by 31 December 2014.

Following this direction, the eligibility deadline and the auction commencement dates have been extended by one week to 28 March and 23 April 2013, respectively, to allow auction applicants additional time to consider their bidding strategies.

On 14 December 2012, the minister directed the ACMA to set the reserve price for 700 MHz spectrum at $1.36 per megahertz (MHz) per population. The minister also issued an amending direction to increase the competition limits from 2x20 MHz to 2x25 MHz for spectrum in the 700 MHz band.

Further information on the digital dividend auction is available on ACMA’s website at www.engage.acma.gov.au/digitaldividend.