Legalize / United Kingdom / Statutory-Instrument

The Wireless Telegraphy (Licence Award) Regulations 2012

Type Statutory-Instrument

Publication 2012-11-09

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Reform history JSON API

(4) Where a bidder does not satisfy the requirements set out in paragraph (3), OFCOM shall notify the bidder of that fact, and for any primary bid rounds following notice being given under this paragraph the bidder’s eligibility limit shall be zero.

CHAPTER 8 — Procedure and further deposit for supplementary bids round

Notice to be given to bidders before supplementary bids round

60

Before the start of the supplementary bids round, OFCOM shall notify each bidder of—

(a) the date on which, and the times on that date within which, the supplementary bids round will take place;

(b) the deadline (which shall be after the end of the supplementary bids round) by when bidders must pay a further sum in pounds as a deposit calculated in accordance with regulation 66; and

Submission of supplementary bids form to OFCOM

61

(1) A bidder must submit the completed supplementary bids form to OFCOM by using the electronic auction system, except as provided for in regulation 62.

(2) The completed supplementary bids form must be received by OFCOM within the times notified to bidders under regulation 60(a) except as provided for in regulation 63.

Alternative method for submission of supplementary bids form

62

(1) Where OFCOM are satisfied that a bidder is unable to submit a supplementary bids form by using the electronic auction system because of technical failure (or an event or circumstance with similar effect on the bidder’s ability to use the electronic auction system), OFCOM shall notify the bidder of an alternative method of submitting the supplementary bids form and any requirements relating to the authentication of communications made by means of the alternative method.

(2) The bidder must submit the supplementary bids form by means of the alternative method and must comply with any requirements which have been notified to it under paragraph (1) relating to the authentication of communications.

Extension to supplementary bids round

63

(1) Where—

(a) OFCOM have not received a completed supplementary bids form from a bidder by the time notified to bidders under regulation 60(a) as the end of the supplementary bids round, and

(b) paragraph (2) applies,

the time by which the bidder’s completed supplementary bids form must be received by OFCOM shall be the time sixty minutes after the time notified to bidders under regulation 60(a) as the end of the supplementary bids round.

(2) This paragraph applies where OFCOM are satisfied that circumstances existed which were beyond the bidder’s control which had the effect that the bidder could not submit its supplementary bids form so that it was received by OFCOM on time.

Incomplete or defective supplementary bids form

64

(1) Where, due to the manner of completion, a supplementary bids form is incomplete or defective but OFCOM believe that they can ascertain the bidder’s intention in relation to the making of the supplementary bid or bids, OFCOM shall ask the bidder to confirm in a notice to OFCOM by a deadline specified by OFCOM that OFCOM have correctly ascertained the bidder’s intention in relation to the making of the supplementary bid or bids.

(2) Where the bidder confirms in a notice given to OFCOM by the deadline which is signed by two authorised persons that OFCOM have correctly ascertained the bidder’s intention, the supplementary bids form in its entirety shall be accepted by OFCOM on that basis.

(3) Where the bidder does not give such confirmation—

(a) where the incompleteness or defect relates to one or more of the supplementary bids made on the supplementary bids form, that supplementary bid or those supplementary bids (as the case may be) shall not be valid;

(b) where sub-paragraph (a) does not apply, the supplementary bids form in its entirety shall be rejected by OFCOM and none of the supplementary bids made on that supplementary bids form shall be valid.

Notification that supplementary bid not valid

65

Where a bidder submits a supplementary bid that is not a valid supplementary bid, OFCOM shall, after the end of the supplementary bids round, notify the bidder of that fact and shall give the reasons why the bid is not a valid supplementary bid.

Further deposit for supplementary bids round

66

(1) By the deadline notified to bidders under regulation 60(b), each bidder must pay into OFCOM’s bank account a further sum in pounds as a deposit so that the total amount the bidder has on deposit is not less than—

(a) where a bidder has on all occasions paid sums for deposit by the time specified for payment by OFCOM under regulation 59, a proportion specified by OFCOM, which is at most one half, of the amount of the bidder’s highest valid principal stage bid; or

(b) where a bidder has not on all occasions paid sums for deposit by the time specified for payment by OFCOM under regulation 59, the amount of the bidder’s highest valid principal stage bid.

(2) The further sum must be paid into OFCOM’s bank account by a same day electronic transfer with accompanying information which identifies the bidder.

(3) Where a bidder does not so make payment, OFCOM shall notify the bidder and the bidder shall be excluded from the award process and shall not receive a refund of any sums which the bidder paid as a deposit under these Regulations, which shall (where not already forfeited) be forfeited together with any interest which has accrued on the deposit, and all of that bidder’s principal stage bids shall be deemed to be invalid and shall not be taken into consideration for the purposes of determining—

(a) the winning principal stage bids in accordance with regulation 67;

(b) the base price payable by a winning bidder in accordance with regulation 68.

CHAPTER 9 — Determination of the winning principal stage bids and conclusion of principal stage

Determination of the winning principal stage bids

67

(1) The winning principal stage bids shall be those valid principal stage bids that comprise the winning combination of principal stage bids.

(2) The winning combination of principal stage bids shall be the valid combination of principal stage bids for which the total value of the combination of bids calculated in accordance with paragraph (9) is the highest.

(3) Where there is more than one valid combination of principal stage bids for which the total value is equal highest, the winning combination of principal stage bids shall be determined in accordance with the order of precedence set out in paragraph (5) and then in accordance with paragraph (6) if necessary.

(4) A combination of principal stage bids is a valid combination of principal stage bids if—

(a) all of the bids included in the combination are valid principal stage bids;

(b) there is no more than one principal stage bid from each bidder within the combination;

(c) there is at least one bid in the combination from an opted-in bidder (if there are one or more valid opt-in bids) for a selection of lots that includes (in addition to any other lots which are included) all of the lots selected in a valid opt-in bid made by that bidder;

(d) the total number of lots of each type in the combination is not greater than the number of lots of that type available in the award process;

(e) the number produced by adding together the number of 2.6 GHz concurrent low power 10 MHz lots in the combination and the number of 2.6 GHz concurrent low power 20 MHz lots in the combination is not greater than ten;

(f) if any bid in the combination includes a 2.6 GHz concurrent low power 10 MHz lot, the total number of 2.6 GHz paired frequency lots in the combination is not greater than twelve; and

(g) if any bid in the combination includes a 2.6 GHz concurrent low power 20 MHz lot, the total number of 2.6 GHz paired frequency lots in the combination is not greater than ten.

(5) The order of precedence referred to in paragraph (3) shall be determined by the total number of eligibility points associated with each such valid combination of principal stage bids in accordance with paragraph (7) such that valid combinations of principal stage bids with which a greater total number of eligibility points are associated prevail over valid combinations of principal stage bids with which a lesser total number of eligibility points are associated.

(6) If after the provisions in paragraph (5) have been applied more than one valid combination of principal stage bids of highest ranking in the order of precedence remains, OFCOM shall employ a method of random selection from amongst those remaining valid combinations of principal stage bids of highest ranking in the order of precedence to determine the winning combination of principal stage bids.

(7) The number of eligibility points associated with a valid combination of principal stage bids shall be the number equal to the total of the eligibility points associated with each bid in that valid combination of principal stage bids.

(8) The number of eligibility points associated with a bid shall be the number equal to the total of the eligibility points associated with the lots included in the selection specified in that bid.

(9) The total value of a combination of bids (“TV”) shall be calculated in accordance with the formula—

$$TV=A+L−Y$ where— “A” is the total of the amounts in pounds of the bids in the combination; “L” is the number determined in accordance with paragraph (10); “Y” is the number determined under paragraph (11).$

(10) “L” is the number which is the total of the round prices for the first primary bid round for each—

(a) 800 MHz paired frequency lot,

(b) 2.6 GHz paired frequency lot,

(d) 800 MHz coverage obligation lot,

that is available in the award process but was not included in the combination.

(11) “Y” is—

(a) sixty million if the combination includes at least one 2.6 GHz concurrent low power 20 MHz lot;

(b) thirty million if the combination includes at least one 2.6 concurrent 10 MHz lot and does not include any 2.6 GHz concurrent low power 20 MHz lots; or

Determination of base price for each winning principal stage bid

68

In respect of each winning principal stage bid OFCOM shall determine an amount in accordance with Schedule 7 (“base price”) which shall be payable by the relevant winning bidder.[^f00005]

Notification of results of principal stage and refund of deposits

69

Following the determination of the winning principal stage bids under regulation 67, and the determination of the base price for each winning principal stage bid under regulation 68, OFCOM shall—

(a) notify—

(i) each winning bidder of—

(aa) the selection of lots included in its winning principal stage bid;

(bb) the amount of the base price for its winning principal stage bid; and

(cc) the further sum (if any) in pounds as a deposit that it is required to pay in accordance with regulation 70 (“final principal stage deposit”); and

(ii) all other bidders that they have not made a winning principal stage bid;

(b) refund to applicants which were not qualified or which withdrew in accordance with regulation 12, and to bidders which were not winning bidders, any sums which they have paid as a deposit under these Regulations (where such deposits have not been forfeited), but not any interest which has accrued on the deposits.

Final principal stage deposit

70

(1) The final principal stage deposit shall be an amount such that the total amount that the bidder has on deposit is not less than the amount of the base price for that bidder’s winning principal stage bid determined under regulation 68.

(2) The final principal stage deposit must be paid into OFCOM’s bank account by a same day electronic transfer, with accompanying information which identifies the bidder, by a deadline specified by OFCOM.

(3) Where a bidder does not satisfy the requirements set out in paragraph (2) —

(a) OFCOM shall notify the bidder;

(b) the bidder shall be excluded from the award process;

(c) the bidder’s winning principal stage bid shall not be treated as a winning principal stage bid in the assignment stage or the grant stage, and the bidder shall not be assigned any frequencies; and

(d) the bidder shall not receive a refund of any sums which the bidder has paid as a deposit under these Regulations, which shall (where not already forfeited) be forfeited together with any interest which has accrued on the deposit.

(4) The exclusion of a bidder under paragraph (3) shall not affect the determination of the winning principal stage bids that OFCOM made under regulation 67 or the determination of the base price payable by each winning bidder that OFCOM made under regulation 68.

Publication of results of principal stage

71

(1) After the giving of notice under regulation 69(a), OFCOM shall publish on their internet website—

(a) the names of the winning bidders;

(b) in respect of each such winning bidder—

(i) the selection of lots included in its winning principal stage bid; and

(ii) the base price for its winning principal stage bid;

(2) If any winning bidder is excluded from the award process in accordance with regulation 70(3), OFCOM shall publish the name of that bidder on their internet website.

CHAPTER 10 — Assignment stage: preliminary

Assignment stage

72

(1) Where one of the regulations in Chapter 11 applies, OFCOM shall assign frequencies to the bidder that submitted the relevant winning principal stage bid in accordance with that regulation.

(2) If—

(a) more than one winning principal stage bid included 800 MHz paired frequency lots and regulation 76 does not apply,

(b) more than one winning principal stage bid included 2.6 GHz paired frequency lots and none of regulations 80, 81, 82 or 83 apply, or

there shall be one further round of bidding (“assignment stage round”) in accordance with Chapters 12 to 14 to determine which frequencies shall be assigned to each winning bidder that submitted one of those winning principal stage bids.

(3) If a particular type of lot was not included in any winning principal stage bid, there shall be no assignment of the frequencies corresponding to that type of lot and no licence shall be granted for those frequencies.

CHAPTER 11 — Assignment stage: pre-determined frequency assignments

Assignment of frequencies in respect of the 800 MHz coverage obligation lot

73

Where the 800 MHz coverage obligation lot was included in a winning principal stage bid, OFCOM shall assign to the bidder that submitted that winning principal stage bid the frequencies corresponding to that lot.

Assignment of numbered 800 MHz paired frequency lots to winner of the 800 MHz coverage obligation lot

74

(1) This regulation applies where the winning principal stage bid referred to in regulation 73 also included one or more 800 MHz paired frequency lots.

(2) OFCOM shall assign to the bidder that submitted that winning principal stage bid the frequencies corresponding to the block of numbered 800 MHz paired frequency lots that satisfies both of the conditions in paragraph (3).

(3) The conditions are—

(a) the number of 800 MHz paired frequency lots contained within that block is equal to the number of 800 MHz paired frequency lots selected in the winning principal stage bid; and

(b) 800 MHz paired frequency lot 4 is contained within that block.

Assignment of numbered 800 MHz paired frequency lots in the case where 800 MHz paired frequency lots were included in only one winning principal stage bid

75

(1) This regulation applies where 800 MHz paired frequency lots were included in only one winning principal stage bid, and that winning principal stage bid did not also include the 800 MHz coverage obligation lot.

(2) OFCOM shall assign to the bidder that submitted that winning principal stage bid the frequencies corresponding to the block of numbered 800 MHz paired frequency lots that satisfies both of the conditions in paragraph (3).

(3) The conditions are that—

(a) the number of 800 MHz paired frequency lots contained within that block is equal to the number of 800 MHz paired frequency lots selected in that winning principal stage bid; and

(b) 800 MHz paired frequency lot 4 is contained within that block.

Assignment of numbered 800 MHz paired frequency lots in the case where 800 MHz paired frequency lots were included in two winning principal stage bids, one of which also included the 800 MHz coverage obligation lot

76

(1) This regulation applies where 800 MHz paired frequency lots were included in two winning principal stage bids, one of which also included the 800 MHz coverage obligation lot.

(2) OFCOM shall assign to the bidder that submitted the winning principal stage bid that did not include the 800 MHz coverage obligation lot the frequencies corresponding to the block of numbered 800 MHz paired frequency lots that satisfies all of the conditions in paragraph (3).

(3) The conditions are that—

(a) the number of 800 MHz paired frequency lots contained within that block is equal to the number of 800 MHz paired frequency lots selected in that winning principal stage bid;

(b) the numbered 800 MHz paired frequency lots contained within that block are different from the numbered 800 MHz paired frequency lots assigned under regulation 74; and

(c) the block of numbered 800 MHz paired frequency lots assigned under this regulation and the block of numbered 800 MHz paired frequency lots assigned under regulation 74, taken together, form a single block of numbered 800 MHz paired frequency lots.

Assignment of numbered 2.6 GHz paired frequency lots in the case where 2.6 GHz paired frequency lots were included in only one winning principal stage bid

77

(1) Where 2.6 GHz paired frequency lots were included in only one winning principal stage bid, OFCOM shall assign to the bidder that submitted that winning principal stage bid the frequencies corresponding to the block of numbered 2.6 GHz paired frequency lots that satisfies the conditions in paragraph (2).

(2) The conditions are that—

(a) the number of 2.6 GHz paired frequency lots contained within that block is equal to the number of 2.6 GHz paired frequency lots selected in that winning principal stage bid; and

(b) 2.6 GHz paired frequency lot 1 is contained within that block.

Assignment of 2.6 GHz concurrent low power 10 MHz lots in the case where 2.6 GHz paired frequency lots were included in only one winning principal stage bid

78

(1) This regulation applies where—

(a) numbered 2.6 GHz paired frequency lots have been assigned in accordance with regulation 77; and

(b) there are one or more winning principal stage bids which included a 2.6 GHz concurrent low power 10 MHz lot.

(2) OFCOM shall assign to each bidder that submitted a winning principal stage bid which included a 2.6 GHz concurrent low power 10 MHz lot the frequencies corresponding to the two sequentially numbered 2.6 GHz paired frequency lots that satisfy the condition in (3).

(3) The condition is that the number of the lower of the two numbered 2.6 GHz paired frequency lots must be one greater than the highest numbered 2.6 GHz paired frequency lot that has been assigned in accordance with regulation 77.

Assignment of 2.6 GHz concurrent low power 20 MHz lots in the case where 2.6 GHz paired frequency lots were included in only one winning principal stage bid

79

(1) This regulation applies where—

(a) 2.6 GHz paired frequency lots have been assigned in accordance with regulation 77; and

(b) there are one or more winning principal stage bids which included a 2.6 GHz concurrent low power 20 MHz lot.

(2) OFCOM shall assign to each bidder that submitted a winning principal stage bid which included a 2.6 GHz concurrent low power 20 MHz lot the frequencies corresponding to the four sequentially numbered 2.6 GHz paired frequency lots that satisfy the condition in (3).

(3) The condition is that the number of the lowest of the four numbered 2.6 GHz paired frequency lots must be one greater than the highest numbered 2.6 GHz paired frequency lot that has been assigned in accordance with regulation 77.

Assignment of numbered 2.6 GHz paired frequency lots and 2.6 GHz concurrent low power 10 MHz lots in the first special case

80

(1) This regulation applies where—

(a) no winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot;

(b) at least one winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot; and

(c) 2.6 GHz paired frequency lots were included in two winning principal stage bids, with eleven such lots included in one of those winning principal stage bids, and one such lot in the other winning principal stage bid.

(2) OFCOM shall assign—

(a) to the bidder that submitted the winning principal stage bid that included eleven 2.6 GHz paired frequency lots, the frequencies corresponding to the block of eleven 2.6 GHz paired frequency lots containing 2.6 GHz paired frequency lot 1;

(b) to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 12 and 2.6 GHz paired frequency lot 13; and

(c) to the bidder that submitted the winning principal stage bid that included one 2.6 GHz paired frequency lot, the frequencies corresponding to 2.6 GHz paired frequency lot 14.

Assignment of numbered 2.6 GHz paired frequency lots and 2.6 GHz concurrent low power 10 MHz lots in the second special case

81

(1) This regulation applies where—

(a) no winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot;

(b) at least one winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot; and

(c) 2.6 GHz paired frequency lots were included in two winning principal stage bids, with ten such lots included in one of those winning principal stage bids, and one such lot in the other winning principal stage bid.

(2) OFCOM shall assign—

(a) to the bidder that submitted the winning principal stage bid that included ten 2.6 GHz paired frequency lots, the frequencies corresponding to the block of ten 2.6 GHz paired frequency lots containing 2.6 GHz paired frequency lot 1;

(b) to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 11 and 2.6 GHz paired frequency lot 12; and

(c) to the bidder that submitted the winning principal stage bid that included one 2.6 GHz paired frequency lot, the frequencies corresponding to 2.6 GHz paired frequency lot 13.

Assignment of 2.6 GHz paired frequency lots, 2.6 GHz concurrent low power 10 MHz lots and 2.6 GHz concurrent low power 20 MHz lots in the third special case

82

(1) This regulation applies where—

(a) at least one winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot; and

(b) 2.6 GHz paired frequency lots were included in two winning principal stage bids, with nine such lots included in one of those winning principal stage bids, and one such lot in the other winning principal stage bid.

(2) OFCOM shall assign—

(a) to the bidder that submitted the winning principal stage bid that included nine 2.6 GHz paired frequency lots, the frequencies corresponding to the block of nine 2.6 GHz paired frequency lots containing 2.6 GHz paired frequency lot 1;

(b) to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 20 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 10, 2.6 GHz paired frequency lot 11, 2.6 GHz paired frequency lot 12 and 2.6 GHz paired frequency lot 13;

(c) to each bidder (if any) that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 10 and 2.6 GHz paired frequency lot 11; and

(d) to the bidder that submitted the winning principal stage bid that included one 2.6 GHz paired frequency lot, the frequencies corresponding to 2.6 GHz paired frequency lot 14.

Assignment of 2.6 GHz paired frequency lots, 2.6 GHz concurrent low power 10 MHz lots and 2.6 GHz concurrent low power 20 MHz lots in the fourth special case

83

(1) This regulation applies where—

(a) at least one winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot; and

(b) 2.6 GHz paired frequency lots were included in two winning principal stage bids, with eight such lots included in one of those winning principal stage bids, and one such lot in the other winning principal stage bid.

(2) OFCOM shall assign—

(a) to the bidder that submitted the winning principal stage bid that included eight 2.6 GHz paired frequency lots, the frequencies corresponding to the block of eight 2.6 GHz paired frequency lots containing 2.6 GHz paired frequency lot 1;

(b) to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 20 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 9, 2.6 GHz paired frequency lot 10, 2.6 GHz paired frequency lot 11 and 2.6 GHz paired frequency lot 12;

(c) to each bidder (if any) that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot, the frequencies corresponding to 2.6 GHz paired frequency lot 9 and 2.6 GHz paired frequency lot 10; and

(d) to the bidder that submitted the winning principal stage bid that included one 2.6 GHz paired frequency lot, the frequencies corresponding to 2.6 GHz paired frequency lot 13.

Assignment of 2.6 GHz concurrent low power 10 MHz lots in the case where 2.6 GHz paired frequency lots were included in more than one winning principal stage bid

84

(1) This regulation applies where—

(a) no winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot;

(b) at least one winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot;

(d) neither regulation 80 nor regulation 81 apply.

(2) OFCOM shall assign to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot the frequencies corresponding to a block of two numbered 2.6 GHz paired frequency lots.

(3) OFCOM shall identify the block of two numbered 2.6 GHz paired frequency lots referred to in paragraph (2) after OFCOM has determined the winning assignment stage bids for numbered 2.6 GHz paired frequency lots in accordance with regulation 104.

(4) The block of two numbered 2.6 GHz paired frequency lots shall be the block which meets the requirement in paragraph (5).

(5) The combination of the block of two numbered 2.6 GHz paired frequency lots referred to in paragraph (2), and the blocks of numbered 2.6 GHz paired frequency lots included in winning assignment stage bids for numbered 2.6 GHz paired frequency lots, must form a single block of numbered 2.6 GHz paired frequency lots.

Assignment of 2.6 GHz concurrent low power 10 MHz lots and 2.6 GHz concurrent low power 20 MHz lots in the case where 2.6 GHz paired frequency lots were included in more than one winning principal stage bid

85

(1) This regulation applies where—

(a) at least one winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot;

(b) more than one winning principal stage bid included 2.6 GHz paired frequency lots; and

(2) OFCOM shall assign to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 20 MHz lot the frequencies corresponding to a block of four numbered 2.6 GHz paired frequency lots.

(3) OFCOM shall identify the block of four numbered 2.6 GHz paired frequency lots referred to in paragraph (2) after OFCOM has determined the winning assignment stage bids for numbered 2.6 GHz paired frequency lots in accordance with regulation 104.

(4) The block of four numbered 2.6 GHz paired frequency lots shall be the block which meets the requirement in paragraph (5).

(5) The combination of the block of four numbered 2.6 GHz paired frequency lots referred to in paragraph (2), and the blocks of numbered 2.6 GHz paired frequency lots included in winning assignment stage bids for numbered 2.6 GHz paired frequency lots, must form a single block of numbered 2.6 GHz paired frequency lots.

(6) If any bidder submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot, OFCOM shall assign to each such bidder the frequencies corresponding to a block of two numbered 2.6 GHz paired frequency lots, being the lowest two numbered 2.6 GHz paired frequency lots included in the block of four numbered 2.6 GHz paired frequency lots referred to in paragraph (2).

Assignment of 2.6 GHz concurrent low power lots in the case where 2.6 GHz paired frequency lots were not included in any winning principal stage bid

86

(1) This regulation applies where —

(a) at least one winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot or a 2.6 GHz concurrent low power 20 MHz lot; and

(b) 2.6 GHz paired frequency lots were not included in any winning principal stage bid.

(2) OFCOM shall assign to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 10 MHz lot the frequencies corresponding to the following 2.6 GHz paired frequency lots—

(a) 2.6 GHz paired frequency lot 5; and

(b) 2.6 GHz paired frequency lot 6.

(3) OFCOM shall assign to each bidder that submitted a winning principal stage bid that included a 2.6 GHz concurrent low power 20 MHz lot the frequencies corresponding to the following 2.6 GHz paired frequency lots—

(a) 2.6 GHz paired frequency lot 5;

(b) 2.6 GHz paired frequency lot 6;

(d) 2.6 GHz paired frequency lot 8.

Assignment of 2.6 GHz individual frequency lots in the case where 2.6 GHz individual frequency lots were included in only one winning principal stage bid

87

(1) Where 2.6 GHz individual frequency lots were included in only one winning principal stage bid, OFCOM shall assign to the bidder that submitted that winning principal stage bid the frequencies corresponding to the block of 2.6 GHz individual frequency lots that satisfies both of the conditions in paragraph (2).

(2) The conditions are that—

(a) the number of 2.6 GHz individual frequency lots contained within that block is equal to the number of 2.6 GHz individual frequency lots selected in that winning principal stage bid; and

(b) 2.6 GHz individual frequency lot 9 is contained within that block.

CHAPTER 12 — Assignment stage: frequency assignments determined by bidding

Assignment stage round and assignment stage bids

88

(1) Only the following bidders may bid in the assignment stage round—

(a) winning bidders that submitted a winning principal stage bid that included one or more 800 MHz paired frequency lots, and have not been assigned frequencies in respect of those lots under Chapter 11;

(b) winning bidders that submitted a winning principal stage bid that included one or more 2.6 GHz paired frequency lots, and have not been assigned frequencies in respect of those lots under Chapter 11;

(c) winning bidders that submitted a winning principal stage bid that included one or more 2.6 GHz individual frequency lots, and have not been assigned frequencies in respect of those lots under Chapter 11.

(2) A bid made during the assignment stage round (“assignment stage bid”) shall be a bid for a licence which authorises the use of frequencies corresponding to—

(a) a block of numbered 800 MHz paired frequency lots;

(b) a block of numbered 2.6 GHz paired frequency lots; or

(3) OFCOM shall determine which blocks of—

(a) numbered 800 MHz paired frequency lots,

(b) numbered 2.6 GHz paired frequency lots, and

each bidder may bid for.

(4) The list of possible blocks of numbered lots provided to each bidder may be different for each bidder.

(5) The list shall be known as the “assignment stage option list” and each block of lots in that list shall be known as an “assignment stage option”.

(6) A bid made during the assignment stage round shall be a bid for—

(a) a block of numbered 800 MHz paired frequency lots,

(b) a block of numbered 2.6 GHz paired frequency lots, or

which matches an assignment stage option for that bidder.

Preparing an assignment stage option list for each bidder

89

(1) OFCOM shall determine which assignment stage options shall be included in the assignment stage option list for each bidder which is eligible to bid.

(2) If the bidder is eligible to bid under regulation 88(1)(a), the bidder’s assignment stage options shall include each possible block of numbered 800 MHz paired frequency lots which meets the requirements of regulation 90 in relation to that bidder’s winning principal stage bid.

(3) If the bidder is eligible to bid under regulation 88(1)(b), the bidder’s assignment stage options shall include each possible block of numbered 2.6 GHz paired frequency lots which meets the requirements of regulation 91 in relation to that bidder’s winning principal stage bid.

(4) If the bidder is eligible to bid under regulation 88(1)(c), the bidder’s assignment stage options shall include each possible block of numbered 2.6 GHz individual frequency lots which meets the requirements of regulation 92 in relation to that bidder’s winning principal stage bid.

Assignment stage options for 800 MHz paired frequency lots

90

(1) Where no winning principal stage bid included the 800 MHz coverage obligation lot, or the winning principal stage bid that included the 800 MHz coverage obligation lot did not also include any 800 MHz paired frequency lots, the assignment stage options for a bidder eligible to bid under regulation 88(1)(a), in respect of the 800 MHz paired frequency lots included in its winning principal stage bid, shall be those blocks of numbered 800 MHz paired frequency lots which satisfy the following conditions—

(a) the number of 800 MHz paired frequency lots contained in the block is equal to the number of such lots included in the bidder’s winning principal stage bid; and

(b) if that winning bidder were assigned the frequencies corresponding to that block, the following conditions would be satisfied—

(i) each other winning bidder that included 800 MHz paired frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 800 MHz paired frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) no numbered 800 MHz paired frequency lot would be included in more than one of the following blocks of numbered 800 MHz paired frequency lots—

(aa) the block that is the assignment stage option under this paragraph; and

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 800 MHz paired frequency lots in their winning principal stage bids;

(iii) those blocks of numbered 800 MHz paired frequency lots would, taken together, form a single block of numbered 800 MHz paired frequency lots; and

(iv) 800 MHz paired frequency lot 4 would be included in that single block of numbered 800 MHz paired frequency lots.

(2) Where the winning principal stage bid that included the 800 MHz coverage obligation lot also included at least one 800 MHz paired frequency lot (such that frequencies corresponding to numbered 800 MHz paired frequency lots have been assigned to that bidder under regulation 74), the assignment stage options for a bidder eligible to bid under regulation 88(1)(a), in respect of the 800 MHz paired frequency lots included in its winning principal stage bid, shall be those blocks of numbered 800 MHz paired frequency lots which satisfy the following conditions—

(a) the number of 800 MHz paired frequency lots contained in the block is equal to the number of 800 MHz paired frequency lots included in the bidder’s winning principal stage bid; and

(b) if that winning bidder were assigned the frequencies corresponding to that block of numbered 800 MHz paired frequency lots, the following conditions would be satisfied—

(i) each other winning bidder that included 800 MHz paired frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 800 MHz paired frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) no numbered 800 MHz paired frequency lot would be included in more than one of the following blocks of numbered 800 MHz paired frequency lots—

(aa) the block that is the assignment stage option under this paragraph;

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 800 MHz paired frequency lots in their winning principal stage bids;

(cc) the block comprising the frequencies assigned under regulation 74; and

(iii) the blocks of numbered 800 MHz paired frequency lots referred to in sub-paragraph (ii) would, taken together, form a single block of numbered 800 MHz paired frequency lots.

Assignment stage options for 2.6 GHz paired frequency lots

91

(1) Where no winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot or a 2.6 GHz concurrent low power 20 MHz lot, the assignment stage options for a bidder eligible to bid under regulation 88(1)(b), in respect of the 2.6 GHz paired frequency lots included in its winning principal stage bid, shall be those blocks of numbered 2.6 GHz paired frequency lots which satisfy the following conditions—

(a) the number of 2.6 GHz paired frequency lots contained in the block is equal to the number of such lots included in the bidder’s winning principal stage bid; and

(b) if that winning bidder were assigned the frequencies corresponding to that block the following conditions would be satisfied—

(i) each other winning bidder that included 2.6 GHz paired frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 2.6 GHz paired frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) no numbered 2.6 GHz paired frequency lot would be included in more than one of the following blocks of numbered 2.6 GHz paired frequency blocks—

(aa) the block that is the assignment stage option under this paragraph; and

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 2.6 GHz paired frequency lots in their winning principal stage bids;

(iii) the blocks of numbered 2.6 GHz paired frequency lots referred to in sub-paragraph (ii) would, taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(iv) 2.6 GHz paired frequency lot 1 would be included in that single block of numbered 2.6 GHz paired frequency lots.

(2) Where no winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot, but one or more winning principal stage bids included a 2.6 GHz concurrent low power 10 MHz lot, the assignment stage options for a bidder eligible to bid under regulation 88(1)(b), in respect of the 2.6 GHz paired frequency lots included in its winning principal stage bid, shall be those blocks of numbered 2.6 GHz paired frequency lots which satisfy the following conditions—

(a) the number of 2.6 GHz paired frequency lots contained in the block is equal to the number of 2.6 GHz paired frequency lots included in the bidder’s winning principal stage bid; and

(b) if that winning bidder were assigned the frequencies corresponding to that block of 2.6 GHz paired frequency lots, the following conditions would be satisfied—

(i) each other winning bidder that included 2.6 GHz paired frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 2.6 GHz paired frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) the winning bidders that included a 2.6 GHz concurrent low power 10 MHz lot in their winning principal stage bids could, collectively, be assigned frequencies corresponding to a single block of two numbered 2.6 GHz paired frequency lots that does not include any of the following lots—

(aa) 2.6 GHz paired frequency lot 1

(bb) 2.6 GHz paired frequency lot 2;

(cc) 2.6 GHz paired frequency lot 13;

(dd) 2.6 GHz paired frequency lot 14;

(iii) no numbered 2.6 GHz paired frequency lot would be included in more than one of the following blocks of numbered 2.6 GHz paired frequency lots—

(aa) the block that is the assignment stage option under this paragraph;

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 2.6 GHz paired frequency lots in their winning principal stage bids; and

(cc) the block comprising the frequencies to be assigned to winning bidders that included a 2.6 GHz concurrent low power 10 MHz lot in their winning principal stage bids;

(iv) the blocks of numbered 2.6 GHz paired frequency lots referred to in sub-paragraph (iii) would, taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(v) 2.6 GHz paired frequency lot 1 would be included in that single block of numbered 2.6 GHz paired frequency lots.

(3) Where one or more winning principal stage bids included a 2.6 GHz concurrent low power 20 MHz lot, the assignment stage options for a bidder eligible to bid under regulation 88(1)(b), in respect of the 2.6 GHz paired frequency lots included in its winning principal stage bid, shall be those blocks of numbered 2.6 GHz paired frequency lots which satisfy the following conditions—

(a) the number of 2.6 GHz paired frequency lots contained in the block is equal to the number of 2.6 GHz paired frequency lots included in the bidder’s winning principal stage bid; and

(b) if that winning bidder were assigned the frequencies corresponding to that block of numbered 2.6 GHz paired frequency lots, the following conditions would be satisfied—

(i) each other winning bidder that included 2.6 GHz paired frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 2.6 GHz paired frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) the winning bidders that included a 2.6 GHz concurrent low power 20 MHz lot in their winning principal stage bids could, collectively, be assigned the frequencies corresponding to a single block of four numbered 2.6 GHz paired frequency lots that does not include any of the following lots—

(aa) 2.6 GHz paired frequency lot 1

(bb) 2.6 GHz paired frequency lot 2;

(cc) 2.6 GHz paired frequency lot 13;

(dd) 2.6 GHz paired frequency lot 14;

(iii) no numbered 2.6 GHz paired frequency lots would be included in more than one of the following blocks of numbered 2.6 GHz paired frequency lots—

(aa) the block that is the assignment stage option under this paragraph;

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 2.6 GHz paired frequency lots in their winning principal stage bids; and

(cc) the block comprising the frequencies to be assigned to winning bidders that included a 2.6 GHz concurrent low power 10 MHz lot in their winning principal stage bids;

(iv) the blocks of numbered 2.6 GHz paired frequency lots referred to in sub-paragraph (iii) would, taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(v) 2.6 GHz paired frequency lot 1 would be included in that single block of numbered 2.6 GHz paired frequency lots.

Assignment stage options for 2.6 GHz individual frequency lots

92

The assignment stage options for a bidder eligible to bid under regulation 88(1)(c), in respect of the 2.6 GHz individual frequency lots included in its winning principal stage bid, shall be those blocks of numbered 2.6 GHz individual frequency lots which satisfy the following conditions—

(a) the number of 2.6 GHz individual frequency lots contained in the block is equal to the number of such lots included in the bidder’s winning principal stage bid; and

(b) if that bidder were assigned the frequencies corresponding to that block the following conditions would be satisfied—

(i) each other winning bidder that included 2.6 GHz individual frequency lots in its winning principal stage bid could be assigned frequencies corresponding to a block of numbered 2.6 GHz individual frequency lots that, in respect of that bidder’s winning principal stage bid, satisfies the condition in sub-paragraph (a);

(ii) no numbered 2.6 GHz individual frequency lot would be included in more than one of the following blocks of numbered 2.6 GHz individual frequency lots—

(aa) the block that is the assignment stage option; and

(bb) the blocks comprising the frequencies to be assigned to other winning bidders that included 2.6 GHz individual frequency lots in their winning principal stage bids;

(iii) those blocks of numbered 2.6 GHz individual frequency lots would, taken together, form a single block of numbered 2.6 GHz individual frequency lots; and

(iv) 2.6 GHz individual frequency lot 9 would be included in that single block of numbered 2.6 GHz individual frequency lots.

CHAPTER 13 — Assignment stage: procedure for assignment stage round

Assignment stage bids

93

(1) In order to make an assignment stage bid for an assignment stage option, a bidder must, on a form provided to the bidder by OFCOM (“assignment stage bid form”), specify an amount in whole pounds that it is willing to pay, in addition to the base price for that bidder’s winning principal stage bid determined under regulation 68, for a licence that authorises the use of the frequencies corresponding to—

(a) the block of numbered 800 MHz paired frequency lots,

(b) the block of numbered 2.6 GHz paired frequency lots, or

that is the assignment stage option.

(2) A bidder may submit no more than one assignment stage bid for each assignment stage option.

(3) A bidder is not required to submit an assignment stage bid.

(4) A bidder must submit all of its assignment stage bids on the same assignment stage bid form.

Assignment stage bid deposit

94

(1) Each bidder that makes an assignment stage bid must, by a deadline specified by OFCOM (which shall be after the end of the assignment stage round), pay into OFCOM’s bank account by a same day electronic transfer, with accompanying information which identifies the bidder, a further sum in pounds as a deposit so that the total amount the bidder has on deposit is an amount that is not less than the amount (“d”) calculated in accordance with the formula set out in paragraph (2).

(2) The formula is—

$$d=b+ a 1 + a 2 + a 3$ where— “b” is the amount of the base price of the bidder’s winning principal stage bid (determined in accordance with regulation 68); “a₁” is the amount of the highest assignment stage bid made by the bidder for an assignment stage option in relation to numbered 800 MHz paired frequency lots; “a₂” is the amount of the highest assignment stage bid made by the bidder for an assignment stage option in relation to numbered 2.6 GHz paired frequency lots; “a₃” is the amount of the highest assignment stage bid made by the bidder for an assignment stage option in relation to numbered 2.6 GHz individual frequency lots.$

Valid assignment stage bids

95

(1) An assignment stage bid is a valid assignment stage bid if—

(a) the bidder complies with regulations 88(6), 93 and 97 in respect of that assignment stage bid; and

(b) the bidder has paid the full sum required under regulation 94(1) by the deadline.

Notice to bidders before the assignment stage round

96

Before the start of the assignment stage round, OFCOM shall notify each bidder that may make an assignment stage bid in the assignment stage round of—

(a) the assignment stage options that are available to that bidder as determined in accordance with regulation 89;

(b) the date on which, and the times on that date within which, the assignment stage round will take place.

Submission of assignment stage bid form to OFCOM

97

(1) A bidder must submit the completed assignment stage bid form to OFCOM by using the electronic auction system, except as provided for in regulation 98.

(2) The completed assignment stage bid form must be received by OFCOM by the time notified to bidders under regulation 96(b) as the end of the assignment stage round, except as provided for in regulation 99.

Alternative method for submission of assignment stage bid form

98

(1) Where OFCOM are satisfied that a bidder is unable to submit an assignment stage bid form by using the electronic auction system because of technical failure (or an event or circumstance with similar effect on the bidder’s ability to use the electronic auction system), OFCOM shall notify the bidder of an alternative method of submitting the assignment stage bid form and any requirements relating to the authentication of communications made by means of the alternative method.

(2) The bidder must submit the assignment stage bid form by means of the alternative method and must comply with any requirements which have been notified to it under paragraph (1) relating to the authentication of communications.

Extension to assignment stage round

99

(1) Where—

(a) OFCOM have not received a completed assignment stage bid form from a bidder by the time notified to bidders under regulation 96(b) as the end of the assignment stage round, and

(b) paragraph (2) applies,

the time by which the bidder’s completed assignment stage bid form must be received by OFCOM shall be the time sixty minutes after the time notified to bidders under regulation 96(b) as the end of the assignment stage round.

(2) This paragraph applies where OFCOM are satisfied that circumstances existed which were beyond the bidder’s control which had the effect that the bidder could not submit its assignment stage bid form so that it was received by OFCOM on time.

Incomplete or defective assignment stage bid form

100

(1) Where, due to the manner of completion, an assignment stage bid form is incomplete or defective but OFCOM believe that they can ascertain the bidder’s intention in relation to the making of assignment stage bids, OFCOM shall ask the bidder to confirm in a notice to OFCOM by a deadline specified by OFCOM that OFCOM have correctly ascertained the bidder’s intention in relation to the making of assignment stage bids.

(2) Where the bidder confirms in a notice given to OFCOM by the deadline which is signed by two authorised persons that OFCOM have correctly ascertained the bidder’s intention, the assignment stage bid form in its entirety shall be accepted by OFCOM on that basis.

(3) Where the bidder does not give such confirmation—

(a) where the incompleteness or defect relates to one or more of the assignment stage bids made on the assignment stage bid form, that assignment stage bid or those assignment stage bids (as the case may be) shall not be valid, and regulation 102 shall apply;

(b) in all other cases, the assignment stage bid form in its entirety shall be rejected by OFCOM and none of the assignment stage bids made on that assignment stage bid form shall be valid, and regulation 102 shall apply.

Notification that assignment stage bid is not valid

101

Where a bidder submits an assignment stage bid that is not a valid assignment stage bid, OFCOM shall, after the end of the assignment stage round, notify the bidder of that fact and shall give the reasons why the bid is not a valid assignment stage bid.

Procedure where there is no valid assignment stage bid

102

If a bidder does not make a valid assignment stage bid for an assignment stage option, the bidder shall be deemed to have made a valid assignment stage bid of zero pounds for that option.

CHAPTER 14 — Assignment stage: determination of winning assignment stage bids and additional prices

Determination of the winning assignment stage bids for numbered 800 MHz paired frequency lots

103

(1) The winning assignment stage bids for numbered 800 MHz paired frequency lots shall be those valid assignment stage bids that comprise the winning combination of assignment stage bids for numbered 800 MHz paired frequency lots.

(2) The winning combination of assignment stage bids for numbered 800 MHz paired frequency lots shall be the valid combination of assignment stage bids for numbered 800 MHz paired frequency lots having the highest total value of amounts bid.

(3) A combination of valid assignment stage bids is a valid combination of assignment stage bids for numbered 800 MHz paired frequency lots if—

(a) within that combination there is one valid assignment stage bid from each winning bidder eligible to bid under regulation 88(1)(a);

(b) each of those valid assignment stage bids is for a block of numbered 800 MHz paired frequency lots;

(d) the blocks of numbered 800 MHz paired frequency lots included in those valid assignment stage bids and the numbered 800 MHz paired frequency lots comprising the frequencies assigned under regulation 74 (if any have been so assigned), taken together, form a single block of numbered 800 MHz paired frequency lots; and

(e) that single block of numbered 800 MHz paired frequency lots includes 800 MHz paired frequency lot 4.

(4) Where there is more than one valid combination of assignment stage bids for numbered 800 MHz paired frequency lots for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of assignment stage bids to determine the winning combination of assignment stage bids for numbered 800 MHz paired frequency lots.

Determination of the winning assignment stage bids for numbered 2.6 GHz paired frequency lots

104

(1) The winning assignment stage bids for numbered 2.6 GHz paired frequency lots shall be those valid assignment stage bids that comprise the winning combination of assignment stage bids for numbered 2.6 GHz paired frequency lots.

(2) The winning combination of assignment stage bids for numbered 2.6 GHz paired frequency lots shall be the valid combination of assignment stage bids for numbered 2.6 GHz paired frequency lots having the highest total value of amounts bid.

(3) A combination of valid assignment stage bids is a valid combination of assignment stage bids for numbered 2.6 GHz paired frequency lots if—

(a) the conditions in paragraph (4) are satisfied in relation to that combination; and

(b) the additional conditions in paragraph (5), the additional conditions in paragraph (6) or the additional conditions in paragraph (7) are satisfied in relation to that combination.

(4) The conditions are that—

(a) within the combination there is one valid assignment stage bid from each winning bidder eligible to bid under regulation 88(1)(b);

(b) each of those valid assignment stage bids is for a block of numbered 2.6 GHz paired frequency lots; and

(5) Where no winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot and at least one winning principal stage bid included a 2.6 GHz concurrent low power 10 MHz lot, the additional conditions are that—

(a) the winning bidders that included a 2.6 GHz concurrent low power 10 MHz lot in their winning principal stage bids could, collectively, be assigned frequencies corresponding to a single block of numbered 2.6 GHz paired frequency lots meeting the requirements of regulation 91(2)(b)(ii) that does not include any of the numbered 2.6 GHz paired frequency lots that are within the blocks included in the valid assignment stage bids in the combination;

(b) the blocks of numbered 2.6 GHz paired frequency lots included in the valid assignment stage bids in the combination and the block of numbered 2.6 GHz paired frequency lots meeting the requirements of (a), taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(6) Where at least one winning principal stage bid included a 2.6 GHz concurrent low power 20 MHz lot, the additional conditions are that—

(a) the winning bidders that included a 2.6 GHz concurrent low power 20 MHz lot in their winning principal stage bids could, collectively, be assigned frequencies corresponding to a single block of numbered 2.6 GHz paired frequency lots meeting the requirements of regulation 91(3)(b)(ii) that does not include any of the numbered 2.6 GHz paired frequency lots that are within the blocks included in the valid assignment stage bids in the combination;

(b) the blocks of numbered 2.6 GHz paired frequency lots included in valid assignment stage bids in the combination and the block of numbered 2.6 GHz paired frequency lots meeting the requirements of (a), taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(7) Where neither paragraph (5) nor paragraph (6) applies, the additional conditions are that—

(a) the blocks of numbered 2.6 GHz paired frequency lots included in the valid assignment stage bids in the combination, taken together, form a single block of numbered 2.6 GHz paired frequency lots; and

(b) that single block of numbered 2.6 GHz paired frequency lots includes 2.6 GHz paired frequency lot 1.

(8) Where there is more than one valid combination of assignment stage bids for numbered 2.6 GHz paired frequency lots for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of assignment stage bids to determine the winning combination of assignment stage bids for numbered 2.6 GHz paired frequency lots.

Determination of the winning assignment stage bids for numbered 2.6 GHz individual frequency lots

105

(1) The winning assignment stage bids for numbered 2.6 GHz individual frequency lots shall be those valid assignment stage bids that comprise the winning combination of assignment stage bids for numbered 2.6 GHz individual frequency lots.

(2) The winning combination of assignment stage bids for numbered 2.6 GHz individual frequency lots shall be the valid combination of assignment stage bids for numbered 2.6 GHz individual frequency lots having the highest total value of amounts bid.

(3) A combination of valid assignment stage bids is a valid combination of assignment stage bids for numbered 2.6 GHz individual frequency lots if—

(a) within that combination there is one valid assignment stage bid from each winning bidder eligible to bid under regulation 88(1)(c);

(b) each of those valid assignment stage bids is for a block of numbered 2.6 GHz individual frequency lots;

(d) the blocks of numbered 2.6 GHz individual frequency lots included in those valid assignment stage bids, taken together, form a single block of numbered 2.6 GHz individual frequency lots; and

(e) that single block of numbered 2.6 GHz individual frequency lots includes 2.6 GHz individual frequency lot 9.

(4) Where there is more than one valid combination of assignment stage bids for numbered 2.6 GHz individual frequency lots for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of assignment stage bids to determine the winning combination of assignment stage bids for numbered 2.6 GHz individual frequency lots.

Determination of additional prices for winning assignment stage bids

106

(1) In respect of each winning assignment stage bid, OFCOM shall determine an amount in whole pounds (“additional price”) which shall be payable by the relevant winning bidder.

(2) The additional price for each winning assignment stage bid for numbered 800 MHz paired frequency lots shall be determined in accordance with Schedule 8.

(3) The additional price for each winning assignment stage bid for numbered 2.6 GHz paired frequency lots shall be determined in accordance with Schedule 9.

(4) The additional price for each winning assignment stage bid for numbered 2.6 GHz individual frequency lots shall be determined in accordance with Schedule 10.

Notification of results of assignment stage

107

Following the determination of the winning assignment stage bids, and the determination of the additional price for each winning assignment stage bid, OFCOM shall notify each winning bidder of—

(a) the assignment stage options for which the bidder made winning assignment stage bids;

(b) the additional price for each winning assignment stage bid made by the bidder.

CHAPTER 15 — Grant Stage

Determination of the licence fee

108

The licence fee payable by a winning bidder shall be an amount equal to the total of—

(a) the base price determined by OFCOM under regulation 68; and

(b) the additional price for each winning assignment stage bid made by the bidder determined by OFCOM under regulation 106.

Procedure where the amount of a winning bidder’s deposit is less than the licence fee

109

(1) Where, after completion of the assignment stage, the total amount a winning bidder has on deposit at that time is an amount that is less than the amount of the winning bidder’s licence fee calculated in accordance with regulation 108, the bidder must by a deadline specified by OFCOM pay into OFCOM’s bank account by a same day electronic transfer, with accompanying information which identifies the bidder, a sum in pounds calculated in accordance with paragraph (2).

(2) The sum which the bidder must pay to OFCOM shall be the difference between the amount of the winning bidder’s licence fee calculated in accordance with regulation 108 and the amount the bidder has on deposit.

(3) Where a bidder has paid such sum by the deadline, OFCOM shall grant the bidder a licence authorising the use of—

(a) the frequencies that were assigned to the bidder under Chapter 11 of this Part; and

(b) the frequencies corresponding to the assignment stage options for which the bidder made winning assignment stage bids.

(4) Where a bidder has not paid such sum by the deadline, the bidder shall not be entitled to the grant of a licence under these Regulations and shall not receive a refund of any sum which the bidder has paid as a deposit under the Regulations which shall (where not already forfeited) be forfeited, together with any interest which has accrued on the deposit.

Procedure where the amount of a winning bidder’s deposit is greater than or equal to the licence fee

110

(1) Where, after completion of the assignment stage, the total amount a winning bidder has on deposit at that time is an amount that is greater than or equal to the amount of the winning bidder’s licence fee calculated in accordance with regulation 108, OFCOM shall—

(a) grant the winning bidder a licence authorising the use of—

(i) the frequencies that were assigned to the bidder under Chapter 11 of this Part; and

(ii) the frequencies corresponding to the assignment stage options for which the bidder made winning assignment stage bids; and

(b) refund to the winning bidder a sum in pounds calculated in accordance with paragraph (2).

(2) The sum which OFCOM shall refund to a winning bidder shall be the difference (if any) between the amount the winning bidder has on deposit and the amount of the winning bidder’s licence fee calculated in accordance with regulation 108.

Completion of the award process

111

After the grant of licences, OFCOM shall complete the award process by publishing on their internet website—

(a) details of all valid principal stage bids and all valid assignment stage bids made by each bidder;

(b) the names of the persons to whom licences were granted, and—

(i) details of the frequencies in respect of which the licences were granted; and

(ii) details of the licence fees paid;

(i) details of the frequencies in respect of which licences would have been granted; and

(ii) details of the licence fees which would have been payable for those licences had they been granted.

PART 5 — ACTIVITY RULES

Forfeit of deposit and exclusion from award process

112

If, in relation to an applicant which is qualified to bid or a bidder, OFCOM are satisfied that any of the events set out in regulation 114 are occurring (or have occurred) and that the occurrence would materially affect the outcome of the award process—

(a) any sum paid as a deposit under these Regulations shall be forfeited (together with any interest which has accrued on the deposit) by, and not refunded to, the applicant or bidder concerned; and

(b) that applicant or bidder may also be excluded from the award process by OFCOM giving that applicant or bidder notice in writing.

Bids made by an excluded bidder

113

(1) Where a bidder is excluded from the award process under regulation 112 during the principal stage, all of the principal stage bids submitted by the bidder shall be deemed to be invalid and shall not be taken into consideration for the purposes of determining—

(a) the winning principal stage bids under regulation 67;

(b) the base price payable by a winning bidder under regulation 68.

(2) Where a bidder is excluded from the award process under regulation 112 during the assignment stage, all of the assignment stage bids submitted by the bidder (including any bids which the bidder is deemed to have submitted under regulation 102) shall be deemed to be invalid and shall not be taken into consideration for the purposes of determining—

(a) the winning assignment stage bids under regulation 103, 104 or 105;

(b) the additional price payable by a winning bidder under regulation 106.

Events

114

(1) The events referred to in regulation 112, are the events in paragraph (2) and the events in paragraph (3).

(2) Events in relation to an applicant or a bidder are—

(a) the submission to OFCOM of any information in connection with the award process which is false or misleading;

(b) any member of that applicant’s or bidder’s bidder group colluding or attempting to collude with another person to distort the outcome of the award process;

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