Broadband wireless access up for auction

After unexpectedly high market demand for some apparatus licences, ACMA has decided to auction broadband wireless access licences in the frequency band 1900-1920 MHz in regional and remote areas during the first quarter of 2007.

Licences for broadband wireless access services were first made available in February 2005 on a first-in-time basis as the Australian Communications Authority believed that there was little demand for this spectrum. However, demand exceeded supply and some applicants were unable to obtain licences.

Out of the 12 applications for licences, three missed out on all applications and a further five applicants had a mix of passes and failures.

"ACMA is keen to increase opportunities for broadband wireless access deployment in regional and remote areas," said Giles Tanner, general manager of ACMA's Inputs to Industry Division.

"ACMA considers that a price-based allocation is the simplest way to ensure fairness and the efficient use and allocation of spectrum where demand for spectrum exceeds supply."

ACMA will model the 1900-1920 MHz band allocation process on the open-outcry auction allocation method used to allocate low power open narrowcasting licences.

A reserve price for the licence has not been set yet but Donald Robertson, ACMA media manager, believes it will be based on ACMA's costs to hold an auction. He also said that if the allocation of a licence does not require an auction then the price charged for the licence will be consistent with ACMA's fees and charges that apply to similar services.

Licences are issued with rollout obligations on licensees to encourage deployment of services and discourage hoarding. If licences are not renewed as a result of non-compliance with the rollout obligations, spectrum will become available for allocation by auction.