ACMA chooses auction system for digital dividend spectrum sale

The Australian Communications and Media Authority (ACMA) will use a combinatorial clock auction (CCA) format for the sale of digital dividend spectrum.

“The combinatorial clock auction has already been used successfully overseas and is the methodology most likely to produce an efficient allocation of spectrum,” said ACMA chairman, Chris Chapman.

The CCA is an auction method used to sell multiple items in a single auction process. It will allow bidders to bid on packages of spectrum in both the 700 MHz and 2.5 GHz bands, offering them the opportunity to acquire the specific combinations of spectrum which meet their business needs.

It is well suited to auctions where the value of an individual lot to a bidder depends significantly on what other lots that bidder can acquire. The winning bidders then are those that make the highest value combination of bids.

“This decision paves the way for a successful auction, which is expected to take place in late 2012,” said Chapman.

Digital dividend spectrum includes spectrum that will be auctioned in the 700 MHz and 2.5 GHz bands. This auction is part of the ACMA’s strategy to address demand for spectrum for wireless broadband and provide an opportunity to bring new services to the Australian market - such as 4G mobile services.

Further information on the auction system can be found on the ACMA’s Realising the digital dividend site.