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The Wireless Telegraphy (Licence Award) Regulations 2025

Type Statutory-Instrument

Publication 2025-06-10

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 10th June 2025

Coming into force: 30th June 2025

Before making these Regulations OFCOM have given notice of their proposal to do so in accordance with section 122(4)(a) of the Act, published notice of their proposal in accordance with section 122(4)(b) of the Act and have considered the representations made to them before the time specified in that notice in accordance with section 122(4)(c) of the Act.

PART 1 — Introductory

Citation, commencement and extent

1

(1) These Regulations may be cited as the Wireless Telegraphy (Licence Award) Regulations 2025 and shall come into force on 30th June 2025.

(2) These Regulations shall not extend to the Channel Islands or the Isle of Man.

Interpretation

2

(1) In these Regulations—

“26 GHz double lot winner” has the meaning given in regulation 69(f);

“26 GHz lot second period assignment stage bid” has the meaning given in regulation 86(2);

“26 GHz lot second period assignment stage option” has the meaning given in regulation 86(6);

“26 GHz lot second period assignment stage options list” has the meaning given in regulation 86(6);

“26 GHz lot second period additional price” has the meaning given in regulation 90;

“26 GHz lot second period licence” has the meaning given in regulation 102(d);

“26 GHz lower assignment stage bid” has the meaning given in regulation 75(2);

“26 GHz lower assignment stage option” has the meaning given in regulation 75(5);

“26 GHz lower assignment stage options list” has the meaning given in regulation 75(5);

“26 GHz lower base price” has the meaning given in regulation 60(1);

“26 GHz lower lot first period licence” has the meaning given in regulation 102(b);

“26 GHz lower lot first period additional price” has the meaning given in regulation 79;

“26 GHz lower lot winner” has the meaning given in regulation 69(a);

“26 GHz lower only lot winner” has the meaning given in regulation 69(b);

“26 GHz upper assignment stage bid” shall be construed in accordance with regulation 80(2);

“26 GHz upper assignment stage option” has the meaning given in regulation 80(5);

“26 GHz upper assignment stage options list” has the meaning given in regulation 80(5);

“26 GHz upper base price” has the meaning given in regulation 60(2);

“26 GHz upper lot first period licence” has the meaning given in regulation 102(c);

“26 GHz upper lot first period additional price” has the meaning given in regulation 84;

“26 GHz upper lot winner” has the meaning given in regulation 69(d);

“26 GHz upper only lot winner” has the meaning given in regulation 69(e);

“40 GHz assignment stage bid” shall be construed in accordance with regulation 70(2);

“40 GHz assignment stage option” has the meaning given in regulation 70(5);

“40 GHz assignment stage options list” has the meaning given in regulation 70(5);

“40 GHz base price” has the meaning given in regulation 60(3);

“40 GHz licence” has the meaning given in regulation 102(a);

“40 GHz lot winner” has the meaning given in regulation 69(c);

“40 GHz lot additional price” has the meaning given in regulation 74;

“additional deposit” has the meaning given in regulation 13;

“additional price” means the 40 GHz lot additional price, the 26 GHz lower lot first period additional price, the 26 GHz upper lot first period additional price or the 26 GHz lot second period additional price;

“all or nothing set of bids to decrease demand” shall be construed in accordance with regulation 30;

“applicant” means a body corporate making an application for a licence;

“applicant group” means in relation to an applicant— that applicant; each associate of that applicant; and each person in respect of whom the applicant has delivered to OFCOM a completed document in the form set out in Schedule 3;

“assignment stage” has the meaning given in regulation 15;

“assignment stage bid” means a 40 GHz assignment stage bid, a 26 GHz lot second period assignment stage bid, a 26 GHz lower assignment stage bid or a 26 GHz upper assignment stage bid;

“assignment stage form” shall be construed in accordance with regulation 92;

“assignment stage option” means a 40 GHz assignment stage option, a 26 GHz lot second period assignment stage option, a 26 GHz lower assignment stage option or a 26 GHz upper assignment stage option;

“associate” means, in relation to an applicant or bidder, a person who has a material interest in that applicant or bidder;

“authorised person” means a person specified by an applicant in its application as authorised to bind that applicant for all purposes relating to the award process;

“auction system” means the online system established by OFCOM for bidders to participate in the award process or such other electronic or manual system which OFCOM may substitute;

“bidder” means an applicant which has qualified to bid in the award process and which has not withdrawn from the award process on or before the last day for withdrawal;

“bidder group” shall be construed in accordance with regulation 6(3);

“clock price” has the meaning given in regulation 26;

“confidential information” means, in relation to any applicant or bidder, any information which is not in the public domain and which, if it were made public or disclosed to another applicant (or potential applicant) or bidder or a member of their respective applicant or bidder group, would be likely to affect decisions that such other applicant (or potential applicant) or bidder may make in relation to the award process;

“current eligibility capacity” shall be construed in accordance with regulation 42;

“current excess demand” shall be construed in accordance with regulation 40;

“currently selected demand” shall be construed in accordance with regulation 39;

“currently used eligibility points” shall be construed in accordance with regulation 42;

“deadline”, in relation to any requirement imposed on any person by or under these Regulations, means (as the case may require)— the time; the date; or the date, and the time on that date; by which that requirement must be fulfilled by that person;

“designated areas” means the areas of the United Kingdom described as being high density areas in the OFCOM publication “mmWave Spectrum Access Licences: High Density Areas”[^f00002];

“eligibility limit” means, in relation to a bidder, a number of eligibility points which limits the bids that may be made by the bidder in a principal stage round;

“eligibility rule” shall be construed in accordance with regulation 50;

“excess demand” means the number determined by OFCOM in accordance with regulations 24 and 49;

“first period” means the period from the grant of the licence until 30th June 2029;

“financial exposure” shall be construed in accordance with regulation 55(2);

“GHz” means gigahertz;

“grant stage” has the meaning given in regulation 15;

“initial deposit” shall be construed in accordance with regulation 4(3)(b);

“last day for withdrawal” has the meaning given in regulation 11;

“licence” means a wireless telegraphy licence to be granted pursuant to these Regulations to establish or use a wireless telegraphy station or install or use wireless telegraphy apparatus (within designated areas) at frequencies comprised in one or more of the 26 GHz lots or 40 GHz lots to be determined in accordance with the procedure set out in these Regulations;

“material interest” means, whether held directly or indirectly, any interest (construed in accordance with sections 820 to 825 of the Companies Act 2006)[^f00003] in— any share which carries, or any shares which together carry, more than twenty-five per cent of the votes entitled to be cast at a general meeting of the applicant or bidder; or any share or shares in the case where the consent of the holder of that share or those shares is required for the conduct of any business of the applicant or bidder; or the right to appoint or remove a majority of the applicant’s or bidder’s board of directors;

“most recent round” means the principal stage round that has most recently ended;

“notified posted demand number” shall be construed in accordance with regulation 25(c);

“OFCOM” means the Office of Communications;

“OFCOM’s bank account” means the bank account nominated by OFCOM for the purposes of the award process, details of which are published on their website;

“opening price” has the meaning given in regulation 26;

“posted demand number” means the number determined for each bidder for each lot type in accordance with regulations 22(2), 46 or 47;

“posted price” in respect of any lot type means the price determined in accordance with regulations 23 or 48;

“pounds” means pounds sterling;

“price level” is a price expressed in whole thousands of pounds;

“principal stage” has the meaning given in regulation 15;

“principal stage bid” shall be construed in accordance with regulation 17;

“principal stage round” shall be construed in accordance with regulation 16;

“ranking list” has the meaning given in regulation 35;

“required final principal stage deposit” shall be construed in accordance with regulation 64;

“required first assignment stage round deposit” has the meaning given in regulation 98;

“required second assignment stage round deposit” has the meaning given in regulation 99;

“required third assignment stage round deposit” has the meaning given in regulation 100;

“round” means a period of time specified by OFCOM during which bidders may make bids in accordance with the procedure set out in these Regulations;

“second period” means the period (partially overlapping with the first period) after 1st January 2029 until the date of expiry of the licence;

“set of bids to decrease demand” has the meaning given in regulation 30(13);

“set of bids to increase demand” has the meaning given in regulation 29(3);

“set of bids to maintain demand” has the meaning given in regulation 28(2);

“simple set of bids to decrease demand” shall be construed in accordance with regulation 30;

“target number” shall be construed in accordance with regulation 27(2);

“time period for bidding” means, in relation to any round, the times when the auction system is open for submission of bids;

“total 26 GHz lower base price” has the meaning given in regulation 61(1);

“total 26 GHz upper base price” has the meaning given in regulation 61(2);

“total 40 GHz base price” has the meaning given in regulation 61(3);

“total auction sum” shall be construed in accordance with regulation 113;

“total base price” has the meaning given in regulation 61(4);

“valid 26 GHz lot second period assignment stage bid” shall be construed in accordance with regulation 88(4);

“valid 26 GHz lower assignment stage bid” shall be construed in accordance with regulation 77(4);

“valid 26 GHz upper assignment stage bid” shall be construed in accordance with regulation 82(4);

“valid 40 GHz assignment stage bid” shall be construed in accordance with regulation 72(4);

“valid assignment stage bid” means a valid 26 GHz lower assignment stage bid, a valid 26 GHz upper assignment stage bid, a valid 26 GHz lot second period assignment stage bid and a 40 GHz assignment stage bid;

“valid assignment stage form” shall be construed in accordance with regulation 94;

“winning bidder for 26 GHz lower lots” means a bidder who made bids for 26 GHz lower lots which became winning principal stage bids in accordance with regulations 59;

“winning bidder for 26 GHz upper lots” means a bidder who made bids for 26 GHz upper lots which became winning principal stage bids in accordance with regulations 59;

“winning bidder for 40 GHz lots” means a bidder who made bids for 40 GHz lots which became winning principal stage bids in accordance with regulations 59; and

“winning principal stage bidder” means a bidder which won lots in the principal stage.

(2) A reference in these Regulations to a “a 26 GHz lot”, a “26 GHz lower lot”, a “26 GHz upper lot”, or a “40 GHz lot” shall be construed in accordance with Schedule 1.

(3) A reference in these Regulations to a “lot”, “type of lot” or “lot type” shall be construed in accordance with Schedule 1.

(4) A reference in these Regulations to a numbered 26 GHz lot, a numbered 40 GHz lot or a “block” of such lots shall be construed in accordance with Schedule 1.

PART 2 — Application Stage

Applications for the grant of a licence

3

Applications for the grant of a licence shall only be made in accordance with the procedure set out in these Regulations.

Application

4

(1) Only a body corporate may apply to OFCOM for a licence.

(2) A body corporate may only make one application.

(3) To apply for a licence, a body corporate must—

(a) on the day or days specified by OFCOM for receipt of applications, deliver to OFCOM using the delivery method specified by OFCOM, within the times on that day or those days specified by OFCOM—

(i) a document containing the application information required by, and the warranty set out in, Schedule 2, completed in respect of the applicant and signed on its behalf by two authorised persons;

(ii) for each person, not being an associate of the applicant, which the applicant wishes to join its applicant group, a document in the form set out in Schedule 3 which has been—

(aa) completed by the applicant and signed on its behalf by two authorised persons; and

(bb) completed by and signed by or on behalf of the person in respect of whom that document is completed; and

(b) by a deadline specified by OFCOM, pay into OFCOM’s bank account, with accompanying information which identifies the applicant, an initial deposit of one million pounds.

(4) OFCOM shall publish the delivery method, the day or days, times and deadline on their website.

(5) The delivery method to be specified and published by OFCOM may require delivery of original signed documents to OFCOM premises or electronic delivery of an electronic version of originally signed documents.

PART 3 — Qualification Stage

CHAPTER 1 — Qualification

Notification of names of applicants and associates

5

(1) OFCOM shall give notice to each applicant of—

(a) the name of each other applicant and the names of their associates; and

(b) the deadline by which each applicant must notify OFCOM under paragraph (3).

(2) On receipt of that notice, each applicant must examine the names of the other applicants and their associates and determine whether any member of its applicant group is also an associate of another applicant or is also an applicant.

(3) Where an applicant determines that a member of its applicant group is also an associate of another applicant or is also an applicant, it must notify the other applicant and OFCOM of that fact by the deadline specified by OFCOM.

(4) If it appears to OFCOM from any application or notice that a member of one applicant group is also a member of another applicant group, OFCOM shall give notice to each of the applicants concerned of that fact and specify a deadline by when each applicant concerned must notify OFCOM of any change in circumstances the effect of which is that no member of its applicant group is also a member of another applicant group.

Recording of applicant group members

6

(1) Where there has been a change in the composition of an applicant’s applicant group since the date of the application, that applicant must deliver to OFCOM revised versions of the documents provided under 4(3)(a)(i) and 4(3)(a)(ii) which comply with those provisions following that change.

(2) OFCOM shall record the members of each applicant group, taking account of any changes notified under paragraph (1).

(3) Each applicant group so recorded shall constitute a bidder group.

Subsequent changes to bidder groups

7

(1) An applicant or bidder may change its bidder group but, in relation to the award process, the applicant or bidder shall be subject to regulations 9(2), 121 and 123 if they apply to any such change.

(2) If a change involves the addition or departure of an associate, the applicant or bidder must notify OFCOM of the change and deliver to OFCOM a revised version of the documents provided under regulation 4(3)(a)(i) which comply with those provisions following the change.

(3) If a change involves the addition of a person who is not an associate of the applicant or bidder to its bidder group, the applicant or bidder must deliver to OFCOM a document in the form set out in Schedule 3 completed by the applicant or bidder and signed on its behalf by two authorised persons and completed by and signed by or on behalf of the person in respect of whom that document is completed.

Fitness to hold a licence

8

(1) OFCOM shall, for each applicant which has submitted an application in accordance with regulation 4, determine whether that applicant is fit to hold a licence.

(2) In making their determination under paragraph (1), OFCOM shall take into account—

(a) any direction given by the Secretary of State to OFCOM under section 5 of the Communications Act 2003[^f00004];

(b) whether the applicant is a fit and proper person to hold a licence having regard to the probity of—

(i) the applicant;

(ii) each other member of the applicant’s bidder group; and

(iii) each director of each member of the applicant’s bidder group;

(c) whether any of the information submitted to OFCOM by the applicant in connection with the award process is false or misleading;

(d) whether any member of the applicant’s bidder group has colluded, or attempted to collude, or is colluding or attempting to collude, with another person to distort the outcome of the award process;

(e) whether any member of the applicant’s bidder group has acted or is acting in a way which is likely to distort the outcome of the award process;

(f) whether any member of the applicant’s bidder group, or any person to whom confidential information has been disclosed, has disclosed, or is disclosing or attempting to disclose or has incited or is inciting another person to disclose, any confidential information, whether directly or indirectly, to any person, except where the disclosure is—

(i) to OFCOM;

(ii) to a member of the applicant’s bidder group;

(iii) to a provider of finance for the purpose of raising finance for the applicant’s application; or

(iv) to a person for the purpose of enabling that person to decide whether to participate as a member of the applicant’s bidder group;

(g) whether any member of the applicant’s bidder group has obtained or is obtaining or attempting to obtain confidential information relating to another applicant;

(h) whether any member of the applicant’s bidder group is receiving or is attempting to receive services in relation to the award process from any person who has provided or is providing services to OFCOM in relation to the award process; and

(i) whether any person who is a member or a director or an employee of a member of the applicant’s bidder group and is also a director or an employee of a member of another bidder group is—

(i) taking part in the preparation of both bidder groups for participation in the award process; or

(ii) receiving confidential information relating to both bidder groups.

(3) Applicants must, if requested to do so by OFCOM, provide by a deadline specified by OFCOM any information or documentation which OFCOM require to make their determination.

(4) If an applicant does not provide such information or documentation by the deadline specified by OFCOM, OFCOM shall also take that fact into account in making their determination.

(5) Where OFCOM determine that an applicant is not fit to hold a licence the applicant shall be disqualified from the award process.

(6) OFCOM shall inform an applicant which is disqualified of their decision and the reasons for it but that applicant’s initial deposit shall not be forfeited because of that decision.

Qualification to participate in the award process

9

(1) Each applicant—

(a) which was not disqualified under regulation 8; and

(b) which has no member of its bidder group which is also a member of the bidder group of another applicant (which was not disqualified under regulation 8),

shall be qualified to participate in the award process.

(2) An applicant which has a member of its bidder group which is also a member of the bidder group of another applicant shall not be qualified to participate in the award process.

(3) Where an applicant is not qualified to participate in the award process, OFCOM shall inform that applicant of that fact but that applicant’s initial deposit shall not be forfeited for that reason.

Publication of names of qualified applicants

10

(1) OFCOM shall notify each applicant qualified to participate of—

(a) the name of each other applicant who is so qualified; and

(b) the names of their associates.

(2) OFCOM shall publish the names of all applicants who are so qualified on OFCOM’s website.

Withdrawal of an application

11

(1) OFCOM shall notify each applicant qualified to participate of the last day for withdrawal from the award process (“last day for withdrawal”) and shall publish the last day for withdrawal on OFCOM’s website.

(2) If, on or before the last day for withdrawal, OFCOM receives notice from an applicant that it wishes to withdraw its application, signed by two authorised persons, the application shall be withdrawn and the applicant shall be excluded from the award process but that applicant’s initial deposit shall not be forfeited for that reason.

(3) That applicant shall not be re-admitted to the award process.

(4) OFCOM shall notify all other applicants of the withdrawal.

Determination of number of bidders

12

(1) An applicant may not withdraw from the award process after the last day for withdrawal.

(2) After the last day for withdrawal, OFCOM shall determine the number of bidders.

(3) Where there are no bidders, OFCOM shall complete the award process by refunding to applicants which were not qualified, or withdrew in accordance with regulation 11, their initial deposit (where such deposit has not been forfeited) but not any interest which has accrued on the deposit.

(4) Where there are one or more bidders—

(a) OFCOM shall refund to applicants which were not qualified, or withdrew in accordance with regulation 11, their initial deposit (where such deposit has not been forfeited) but not any interest which has accrued on the deposit;

(b) OFCOM shall grant licences in accordance with the procedure set out in these Regulations and;

CHAPTER 2 — Additional deposit and eligibility limit for the first principal stage round

Additional deposit before the first principal stage round

13

(1) A bidder which wishes to participate in the principal stage may pay, in addition to the initial deposit, a deposit (the “additional deposit”) which shall be taken into account by OFCOM in accordance with regulation 14 for the purpose of calculating the bidder’s eligibility limit for the first principal stage round.

(2) To pay the additional deposit, a bidder must, by a deadline specified by OFCOM, pay the additional deposit into OFCOM’s bank account with accompanying information which identifies the bidder.

(3) After the deadline specified under paragraph (2), OFCOM shall determine each bidder’s eligibility limit for the first principal stage round.

Determination of a bidder’s eligibility limit for the first principal stage round

14

(1) A bidder’s eligibility limit for the first principal stage round shall be—

(a) where the amount which the bidder has on deposit (including the initial deposit and the additional deposit) is less than thirty-nine million pounds, the number which is the amount of such deposit in pounds divided by one million;

(b) where the amount which the bidder has on deposit (including the initial deposit and the additional deposit) is equal to or more than thirty-nine million pounds, thirty-nine eligibility points.

(2) Where the number which results from the calculation in paragraph (1)(a) is not a whole number, the bidder’s eligibility limit shall be that number rounded down to the nearest whole number.

(3) That number shall be expressed as a number of eligibility points.

PART 4

Award Process

Principal stage, assignment stage and grant stage

15

(1) The process for the award of licences shall consist of the procedure set out in Part 5 (“principal stage”), the procedure set out in Part 6 (“assignment stage”) and the procedure set out in Part 7 (“grant stage”).

(2) During the principal stage, OFCOM shall determine the total number of 26 GHz lower lots, the total number of 26 GHz upper lots, and the total number of 40 GHz lots which each bidder wins, but not the particular numbered 26 GHz lower lots, particular numbered 26 GHz upper lots or the particular numbered 40 GHz lots.

(3) Following completion of the principal stage, OFCOM shall determine the particular numbered 26 GHz lower lots, particular numbered 26 GHz upper lots, and the particular numbered 40 GHz lots that are to be assigned to the winning bidders in accordance with the procedure set out in the assignment stage.

(4) Following completion of the assignment stage, OFCOM shall grant licences authorising the use of the frequencies determined in accordance with the grant stage.

PART 5 — The Principal Stage

CHAPTER 1 — Principal stage rounds

Principal stage rounds

16

(1) During the principal stage, there shall be one or more principal stage rounds.

(2) A principal stage round shall begin and end at the times notified by OFCOM under regulations 19 and 25.

(3) The number of principal stage rounds shall be determined by OFCOM in accordance with regulation 58.

Principal stage bids

17

A principal stage bid is a bid for the inclusion in a licence of a specified number of lots (of a particular type) and a sum (which must be a whole number of thousands of pounds) which a bidder is willing to pay for a licence which includes those lots.

Total number of lots of each type

18

The total number of lots of each type which are available in the award process is—

(a) seven 26 GHz lower lots;

(b) five 26 GHz upper lots; and

CHAPTER 2 — The first principal stage round

Notification of information to bidders before the first principal stage round

19

Before the first principal stage round, OFCOM shall notify each bidder of—

(a) the eligibility limit which applies to that bidder for that round; and

(b) the date on which, and the time period on that date in which bidding in the first principal stage round will take place.

Lot prices for the first principal stage round

20

In the first principal stage round—

(a) the price for each 26 GHz lower lot shall be two million pounds;

(b) the price for each 26 GHz upper lot shall be two million pounds; and

First principal stage round bids on the auction system

21

(1) To bid in the first principal stage round a bidder must, on the auction system—

(a) specify the number of 26 GHz lower lots which it wishes to bid for at a price of two million pounds per lot;

(b) specify the number of 26 GHz upper lots which it wishes to bid for at a price of two million pounds per lot; and

(2) A bidder may only specify one quantity of lots of each type.

(3) The number of lots of each type specified by the bidder must together meet the constraints of the eligibility rule.

(4) Subject to the constraint in paragraph (3), the number of lots of each type specified by the bidder may be any quantity from (and including) zero up to and including the total number of lots of that type which are available in the award process.

(5) Except where OFCOM have sent a notification to that bidder under regulation 124(1) or 128(1), if a bidder does not specify a quantity of lots it wishes to bid for in respect of any lot type within the time period for bidding, that bidder shall be deemed to have entered a decision to bid for zero lots of that lot type.

(6) Any bidder which, in the first principal stage round, specifies that it wishes to bid for (or is deemed to have bid for) zero 26 GHz lower lots, zero 26 GHz upper lot lots and zero 40 GHz lots, shall be excluded from the award process and 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.

Posted demand number after the end of the first round

22

(1) After the end of the first principal stage round, OFCOM shall determine the posted demand number for each lot type for each bidder.

(2) The posted demand number for each bidder for each lot type is the number of lots of that type which the bidder bid for in the first principal stage round.

Determination by OFCOM of posted price after the end of the first round

23

The posted price for each lot type after the end of the first round shall be the same as the price for each lot type in regulation 20.

Determination by OFCOM of excess demand after the end of the first round

24

(1) After the end of the first round, OFCOM shall determine the excess demand for each lot type.

(2) Excess demand is equal to—

(a) the sum of posted demand numbers for that lot type across all bidders; less

(b) the number of lots of that type which are available in the award process.

CHAPTER 3 — The second and subsequent principal stage rounds

Notification of information to bidders before the second (and each subsequent) principal stage round

25

Before the start of the second (and each subsequent) principal stage round, OFCOM shall notify each bidder of—

(a) the eligibility limit for that bidder for the next round;

(b) the price range for each lot type for the next round;

(c) that bidder’s posted demand number in respect of each lot type which was determined after the most recent round (“notified posted demand number”);

(d) the posted price for each lot type which was determined after the most recent round;

(e) the excess demand for each lot type after the most recent round; and

(f) the date on which, and the time period on that date in which bidding in the next principal stage round will take place.

The price range

26

(1) The price range notified by OFCOM must specify in respect of each lot type—

(a) the lowest price (“the opening price”) in the range; and

(b) the highest price (“the clock price”) in the range.

(2) The opening price in a round shall be—

(a) a price per lot in whole thousands of pounds;

(b) the same for each lot within that lot type; and

(3) The clock price in a round shall be—

(a) a price per lot in whole thousands of pounds;

(b) the same for each lot within that lot type; and

Each bidder must make three sets of bids in the second (and each subsequent) principal stage round

27

(1) In the second principal stage round (and also in each subsequent principal stage round) each bidder must, using the auction system, make three sets of bids; one set of bids in respect of each lot type.

(2) The set of bids which must be made for a particular lot type is determined by the number of lots of that lot type (specified by a bidder on the auction system) in respect of which the bidder wishes to bid at the clock price (the “target number”).

(3) A bidder must not select target numbers for each of the three lot types which would together breach the eligibility rule.

(4) The only sets of bids (and the only bids within those sets) which may be made are those described in regulations 28 to 30.

(5) Subject to the constraint in paragraph (3), the target number of lots may be any quantity from (and including) zero up to and including the total number of lots of that type which are available in the award process.

(6) The target number for a particular lot type may be the same, higher or lower than the bidder’s notified posted demand number for that lot type.

(7) Each bid within a set must be a principal stage bid as described in regulation 17.

The set of bids to be submitted if a bidder wishes to maintain demand for lots at the clock price in the current round

28

(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for the same number of lots of a particular type as the bidder’s notified posted demand number for that lot type—

(a) it must specify a target number of lots on the auction system (within the time period for bidding) which is the same as the notified posted demand number for that bidder for that lot type; and

(b) the set of bids which must be submitted by that bidder comprises—

(i) a bid for the target number of lots at a price per lot which is the clock price; and also

(ii) a bid for the target number of lots at every price level that exists from (and including) the opening price up to but not including the clock price.

(2) A set of bids described in paragraph (1)(b) is referred to as a “set of bids to maintain demand”.

The set of bids to be submitted if a bidder wishes to increase demand for lots at the clock price in the current round

29

(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for more lots of a particular type than the bidder’s notified posted demand number for that lot type—

(a) that bidder must specify a target number of lots on the auction system (within the time period for bidding) for that lot type which is higher than the bidder’s notified posted demand number for that lot type; and

(b) the set of bids which must be submitted by that bidder comprises—

(i) a bid for the target number of lots at every price level that exists from and including the opening price up to and including the clock price;

(ii) a bid for the quantity of lots equal to the bidder’s notified posted demand number, at every price level that exists from (and including) the opening price up to (and including) the clock price; and

(iii) a bid for each number of lots which is a number of lots (if any) that exists between the notified posted demand number for that bidder for that lot type and the target number of lots, at every price level that exists from (and including) the opening price up to (and including) the clock price.

(2) A bidder to which paragraph (1) applies must also nominate a price on the auction system (for the purposes of bid ranking sets of bids) which is—

(a) the opening price;

(b) the clock price; or

(3) A set of bids described in paragraph (1)(b) is referred to as a “set of bids to increase demand”.

The set of bids to be submitted if a bidder wishes to decrease demand for lots at the clock price in the current round

30

(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for fewer lots of a particular type than the bidder’s notified posted demand number for that lot type, that bidder must—

(a) specify a target number of lots on the auction system (within the time period for bidding) for that lot type which is lower than the bidder’s notified posted demand number for that lot type;

(b) nominate a price on the auction system; and

(2) The nominated price may be any price in whole thousands of pounds which is—

(a) the opening price;

(b) the clock price; or

(3) If a bidder specifies a target number of lots which is lower than that bidder’s notified posted demand number for that lot type by two or more lots, that bidder must also indicate on the auction system whether it wishes to submit either—

(a) a simple set of bids to decrease demand; or

(b) an all or nothing set of bids to decrease demand.

(4) If a bidder specifies a target number of lots which is lower than that bidder’s notified posted demand number for that lot type by a single lot, that bidder must submit a simple set of bids to decrease demand.

(5) The set of bids which must be submitted if the bidder submits a simple set of bids to decrease demand are those described in paragraphs (6), (7) and (8).

(6) If the nominated price is the clock price, the set of bids are—

(a) a bid for the target number of lots at the clock price;

(b) a bid at every price level that exists from (and including) the opening price up to (and including) the clock price for all of the lots comprised within the bidder’s notified posted demand number; and

(c) a bid for each quantity of lots (if any) which is higher than the target number of lots, and lower than the bidder’s notified posted demand number, at the nominated price.

(7) If the nominated price is the opening price, the set of bids are—

(a) a bid for the target number of lots at the opening price;

(b) a bid for the target number of lots at every price level that exists from the opening price up to (and including) the clock price; and

(d) a bid for each quantity of lots (if any) which is higher than the target number of lots and lower than the notified posted demand number for that bidder, at the opening price;

(8) If the nominated price is higher than the opening price but lower than the clock price, the set of bids are—

(a) a bid for the target number of lots at the nominated price;

(b) a bid for the target number of lots at every price level which exists which is higher than the nominated price and up to and including the clock price; and

(c) a bid for a quantity of lots equal to that bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the nominated price; and

(d) a bid for each quantity of lots (if any) which is higher than the target number of lots and lower than that bidder’s notified posted demand number, at the nominated price.

(9) The set of bids which must be submitted if the bidder submits an all or nothing set of bids to decrease demand are those described in paragraphs (10), (11) and (12).

(10) If the nominated price is the clock price, the set of bids are—

(a) a bid for the target number of lots at the clock price; and

(b) a bid for all of the lots comprised within the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.

(11) If the nominated price is the opening price, the set of bids are—

(a) a bid for the target number of lots at the opening price;

(b) a bid for the target number of lots at every price level which exists which is higher than the opening price up to (and including) the clock price; and

(c) a bid for a quantity of lots equal to the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.

(12) If the nominated price is higher than the opening price but lower than the clock price, the set of bids are—

(a) a bid for the target number of lots at the nominated price;

(b) a bid for the target number of lots at every price level which exists which is higher than the nominated price and up to (and including) the clock price; and

(c) a bid for a quantity of lots equal to the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.

(13) A “set of bids to decrease demand” means a simple set of bids to decrease demand or an all or nothing set of bids to decrease demand.

Failure to specify a target number of lots on the auction system within the time period for bidding in a round

31

(1) This paragraph applies to a bidder if, in relation to any lot type, that bidder—

(a) has not specified on the auction system within the time period for bidding the target number of lots which it wishes to bid for;

(b) that bidder had a notified posted demand number of zero for that lot type following the most recent round; and if

(2) A bidder to which paragraph (1) applies shall be deemed to have submitted a set of bids to maintain demand for that lot type.

(3) This paragraph applies to a bidder if, in relation to any lot type, that bidder—

(a) has not specified on the auction system within the time period for bidding the target number of lots which it wishes to bid for;

(b) that bidder had a notified posted demand number of one or more lots of that type after the most recent round; and if

(4) A bidder to which paragraph (3) applies—

(a) shall be deemed to have selected a target number of zero lots and nominated the opening price; and

(b) that bidder shall be deemed to have submitted a simple set of bids to decrease demand for that lot type.

CHAPTER 4 — Bid selection process for OFCOM to determine posted demand numbers and excess demand after the end of the second (and each subsequent) principal stage round

Creating a ranking list of sets of bids and carrying out a selection process with regard to sets of bids on the list in order to determine each bidder’s posted demand number

32

(1) In order to determine each bidder’s posted demand number after the second (and each subsequent) principal stage round OFCOM shall follow the process in this regulation.

(2) OFCOM shall from the sets of bids made by all bidders—

(a) first, identify all sets of bids to maintain demand;

(b) second, identify all sets of bids to decrease demand;

(3) Having identified sets of bids OFCOM shall—

(a) calculate the price point for all sets of bids to decrease demand in accordance with regulation 33; and

(b) calculate the price point for all sets of bids to increase demand in accordance with regulation 34.

(4) OFCOM shall (having regard to the price points) create a ranking list of all of the sets of bids to increase demand and all of the sets of bids to decrease demand in accordance with regulation 35;

(5) OFCOM shall consider sets of bids on the ranking list in order to determine whether or not they are to be accorded removed status and whether or not they are to be accorded reduced status and then repeat the process as required by regulations 36, 37 and 38.

(6) After the process is complete OFCOM shall determine the posted demand number for each bidder for each lot type in accordance with regulations 45, 46 and 47.

Calculating the price point for all sets of bids where a bidder decreased demand

33

(1) In relation to each set of bids to decrease demand OFCOM shall calculate the price point in accordance with paragraph (2).

(2) For each such set of bids made by a bidder, the price point in relation to that set is a number calculated as—

(a) the difference in whole thousands of pounds between the nominated price for that set and the opening price for that lot type; divided by

(b) the difference in whole thousands of pounds between the clock price for that lot type and the opening price for that lot type.

Calculating the price point for all sets of bids where a bidder increased demand

34

(1) In relation to each set of bids to increase demand OFCOM shall calculate the price point in accordance with paragraph (2).

(2) For each such set of bids made by a bidder, the price point in relation to that set is a number calculated as—

(a) the difference in whole thousands of pounds between the nominated price for that set and the opening price for that lot type; divided by

(b) the difference in whole thousands of pounds between the clock price for that lot type and the opening price for that lot type.

Creating a ranking list which contains sets of bids to decrease demand and sets of bids to increase demand

35

(1) OFCOM shall create a list which ranks the sets of bids to decrease demand and the sets of bids to increase demand (the “ranking list”).

(2) The ranking list shall include sets of bids, irrespective of lot type, on the same list.

(3) The ranking list shall include sets of bids to decrease demand and sets of bids to increase demand, on the same list.

(4) Each of the sets of bids shall be listed in ascending order of price point (irrespective of lot type and irrespective of whether it is a set of bids to decrease demand or a set of bids to increase demand), with sets of bids with lower price points being placed higher in the list than sets of bids with higher price points.

(5) Where two or more sets of bids have the same price point, OFCOM shall use a method of random selection to determine the relative ranking of those sets of bids on the list.

Selecting sets of bids from the ranking list

36

(1) OFCOM shall consider each set of bids on the ranking list in turn starting from the top of the list and working towards the bottom of the list, in order to determine if a set of bids would meet the criteria to be removed from the ranking list.

(2) If a set of bids is to be removed from the ranking list OFCOM shall determine that bidder’s posted demand number for that lot type by reference to the bidder’s target number of lots within that set of bids.

(3) If the set of bids is not removed from the ranking list, OFCOM shall determine if that set of bids meets the criteria to be accorded reduced status.

(4) If the set of bids is not to be removed nor accorded reduced status, OFCOM shall consider if the next set of bids immediately lower on the list would meet the criteria to be removed from the ranking list and, if not, then consider if that set of bids is to be accorded reduced status.

Remaking the ranking list after each selection

37

On each occasion when a set of bids meets the criteria to be removed from the ranking list or accorded reduced status OFCOM shall—

(a) remake the list without including a set of bids which is to be removed but including a set of bids which has been accorded reduced status; and

(b) consider afresh each set of bids (if any) on the list starting from the top of the new list and working towards the bottom of the list (in light of currently selected demand) until a set of bids is removed or accorded reduced status, or until completion of the selection process in accordance with regulation 38, whichever happens first.

The completion of the selection process

38

OFCOM shall continue considering sets of bids in turn until—

(a) OFCOM has considered each set of bids that was submitted in the round at least once; and

(b) the last set of bids (if any) on the list (or any list which has been remade in accordance with regulation 37) has been considered and not removed or accorded reduced status.

Currently selected demand for lots of a particular type

39

During the selection process the currently selected demand for lots of a particular type for any particular bidder shall—

(a) at the beginning of the selection process be set as equal to the notified posted demand number for that bidder in respect of that lot type; and

(b) be changed in respect of that bidder for that particular lot type whenever a set of bids of that lot type from that bidder is removed or accorded reduced status in accordance with regulations 41, 43 or 44.

Current excess demand for lots of a particular type

40

At any time, the current excess demand for lots of a particular type is equal to—

(a) the sum of currently selected demand for that lot type across all bidders; less

(b) the total number of lots of that type which are available in the award process.

Criteria for determining if a set of bids to decrease demand is to be removed or accorded reduced status

41

(1) When determining if a set of bids to decrease demand on the ranking list is to be removed or accorded reduced status, OFCOM shall carry out the steps in paragraphs (2) to (9).

(2) In relation to the lot type in question, if the current excess demand is zero or less than zero, the set of bids shall not be removed from the ranking list.

(3) If the current excess demand is greater than zero, then the set of bids shall be removed if the condition in paragraph (4) is satisfied.

(4) The condition is that if the target number of lots for the set of bids in question were to replace the currently selected demand for lots of that type for the bidder in question and the current excess demand for all bidders were to be recalculated on that basis, the recalculated current excess demand would be zero or greater than zero.

(5) If a set of bids is removed OFCOM shall change the currently selected demand for the bidder in question for the relevant lot type to the target number of lots of that type for the set of bids which has been removed.

(6) Subject to paragraph (8), if the set of bids is not removed, OFCOM shall consider whether that set of bids is to be accorded reduced status.

(7) That set of bids shall be accorded reduced status if current excess demand across all bidders for the lot type in question is greater than zero.

(8) If an all or nothing set of bids to decrease demand is not removed, it shall not be accorded reduced status.

(9) If a set of bids is accorded reduced status—

(a) OFCOM shall subtract the current excess demand from the currently selected demand for the bidder and the lot type in question; and

(b) the number calculated in accordance with sub-paragraph (a) shall replace the currently selected demand for the bidder for the lot type in question.

Currently used eligibility points for a bidder

42

(1) At any time during the selection process, the “currently used eligibility points” for any particular bidder is calculated as the sum of—

(a) currently selected demand for 26 GHz lower lot for that particular bidder multiplied by 2;

(b) currently selected demand for 26 GHz upper lots for that particular bidder multiplied by 2; and

(2) At any time during the selection process, the “current eligibility capacity” for any particular bidder is calculated as the difference between—

(a) the bidder’s eligibility limit following the most recent round; and

(b) the bidder’s currently used eligibility points.

Criteria for determining if a set of bids to increase demand is to be removed or accorded reduced status for the 26 GHz lower lot type and 26 GHz upper lot type

43

(1) When determining if a set of bids to increase demand on the ranking list for 26 GHz lower lots or 26 GHz upper lots is to be removed or accorded reduced status, OFCOM shall carry out the steps in paragraphs (2) to (7).

(2) In relation to the bidder in question, if the current eligibility capacity is equal to or lower than 1, the set of bids may not be removed.

(3) If the current eligibility capacity is equal to or greater than 2, then the set of bids shall be removed if the condition in paragraph (4) is satisfied.

(4) The condition is that, if the target number of lots for the set of bids in question were to replace that bidder’s currently selected demand for lots of that type, the bidder’s recalculated current eligibility capacity would be equal to or greater than zero.

(5) If a set of bids is removed OFCOM shall change the currently selected demand for the bidder in question for the relevant lot type to the target number of lots.

(6) If the set of bids is not removed, and current eligibility capacity for the bidder in question is equal to or greater than 2, the set of bids shall be accorded reduced status.

(7) If a set of bids is accorded reduced status OFCOM shall replace the currently selected demand for the bidder in question for the relevant lot type by the number calculated in accordance with paragraph (8).

(8) The number is—

(a) the currently selected demand for the bidder in question for the relevant lot type added to a number equal to half of the bidder’s current eligibility capacity; and

(b) if the number resulting from the calculation in sub-paragraph (a) is a number that is not a whole number, OFCOM shall round down that number to the nearest whole number.

Criteria for determining if a set of bids to increase demand is to be removed or accorded reduced status for the 40 GHz lot type

44

(1) When determining if a set of bids to increase demand on the ranking list for 40 GHz lots is to be removed or accorded reduced status, OFCOM shall carry out the following steps in paragraphs (2) to (7).

(2) In relation to the bidder in question, if the current eligibility capacity is equal to zero, the set of bids may not be removed nor reduced.

(3) If the current eligibility capacity is greater than zero, then the set of bids shall be removed if the condition in paragraph (4) is satisfied.

(4) The condition is that if the target number of lots for the set of bids in question were to replace that bidder’s currently selected demand for lots of that type, the bidder’s recalculated current eligibility capacity would be equal to or greater than zero.

(5) If a set of bids is removed OFCOM shall change the currently selected demand for the bidder in question for the relevant lot type to the target number of lots.

(6) If the set of bids is not removed, and current eligibility capacity for the bidder in question is greater than zero, the set of bids shall be accorded reduced status.

(7) If a bid is accorded reduced status OFCOM shall increase the currently selected demand for the bidder in question by the number of lots equal to the bidder’s current eligibility capacity.

CHAPTER 5 — Determination by OFCOM of each bidder’s posted demand number and determination of the posted price after the second and subsequent principal stage rounds

Determination by OFCOM of posted demand numbers

45

After the completion of the selection process after the second and subsequent principal stage rounds OFCOM shall determineeach bidder’s posted demand number for each lot type in accordance with regulations 46 and 47.

Posted demand number in the case of sets of bids to maintain demand

46

If, for a particular lot type, a bidder specified a target number of lots which was the same as the notified posted demand number for that bidder for that lot type (following the most recent round) the target number of lots shall be that bidder’s posted demand number.

Posted demand number in the case of sets of bids to increase demand and sets of bids to decrease demand

47

If, for a particular lot type, a bidder specified a target number of lots that is higher than or lower than the bidder’s notified posted demand number for that lot type (following the most recent round), that bidder’s posted demand number for that lot type shall be the same number as that bidder’s currently selected demand after the completion of the selection process.

Determination by OFCOM of posted price

48

(1) After the completion of the selection process after the second (and after each subsequent) principal stage round, OFCOM shall determine the posted price for each lot type in accordance with paragraphs (2) to (6).

(2) If the current excess demand for lots of a lot type is greater than zero, OFCOM shall set the posted price for that lot type equal to the clock price for that round for that lot type.

(3) If the current excess demand for lots of a lot type is equal to zero and at least one simple set of bids to decrease demand or one all or nothing set of bids to decrease demand for that lot type has been removed or accorded reduced status, OFCOM shall set the posted price for that lot type as equal to the highest nominated price amongst the nominated prices of all simple sets of bids to decrease demand and the all or nothing sets of bids to decrease demand for that lot type which have been removed or accorded reduced status.

(4) If the current excess demand for lots of a lot type is equal to zero and no simple set of bids to decrease demand and no all or nothing set of bids to decrease demand for that lot type has been removed or accorded reduced status, OFCOM shall set the posted price for that lot type equal to the opening price for that round for that lot type.

(5) If the current excess demand for lots of a lot type is lower than zero, OFCOM shall set the posted price for that lot type as equal to the opening price for that round for that lot type.

(6) The posted price for each lot type shall be the same for all bidders.

CHAPTER 6 — Determination by OFCOM of excess demand after the second and subsequent principal stage

Determination of excess demand by OFCOM

49

(1) After the completion of the selection process, OFCOM shall determineexcess demand for each lot type.

(2) In respect of any particular lot type, the excess demand at the end of the round shall be the same number as that lot type’s current excess demand.

CHAPTER 7 — Eligibility limits during the principal stage

Eligibility rule

50

(1) The eligibility rule is that the eligibility points associated with a bidder’s submission of the three bids in the first principal stage round, the three sets of bids to be made in the second principal stage round, or the three sets of bids to be made in each subsequent principal stage round, must not exceed that bidder’s eligibility limit for the round.

(2) In the first principal stage round the number of eligibility points associated with a bidder’s submission of the three bids are the sum of—

(a) the eligibility points associated with a 26 GHz lower lot multiplied by the number of 26 GHz lower lots comprised within that bidder’s bid;

(b) the eligibility points associated with a 26 GHz upper lot multiplied by the number of 26 GHz upper lots comprised within that bidder’s bid;

(c) the eligibility points associated with a 40 GHz lot multiplied by the number of 40 GHz lots comprised within that bidder’s bid.

(3) In the subsequent principal stage rounds, the eligibility points associated with a bidder’s submission of the three sets of bids are the sum of—

(a) the eligibility points associated with a 26 GHz lower lot multiplied by that bidder’s target number for such lots;

(b) the eligibility points associated with a 26 GHz upper lot multiplied by that bidder’s target number for such lots;

Eligibility points associated with lots

51

The number of eligibility points associated with lots are—

(a) 2 eligibility points for each 26 GHz lower lot;

(b) 2 eligibility points for each 26 GHz upper lot; and

Eligibility limit in the first round

52

In the first principal stage round a bidder’s eligibility limit is determined in accordance with regulation 14.

Eligibility limit in the second and subsequent rounds

53

In the second and subsequent principal stage rounds, a bidder’s eligibility limit shall be equal to the number of eligibility points used by the bidder in the most recent round.

Eligibility points used by a bidder

54

(1) The number of eligibility points used by a bidder in the most recent round shall be equal to the number of eligibility points associated with that bidder’s notified posted demand number.

(2) The eligibility points associated with a bidder’s notified posted demand number are the sum of—

(a) the eligibility points associated with a 26 GHz lower lot multiplied by that bidder’s notified posted demand number for 26 GHz lower lots;

(b) the eligibility points associated with a 26 GHz upper lot multiplied by that bidder’s notified posted demand number for 26 GHz upper lots;

(c) the eligibility points associated with a 40 GHz lot multiplied by that bidder’s notified posted demand number for 40 GHz lots.

CHAPTER 8 — Deposits during the principal stage

Deposits during the principal stage

55

(1) Where, after the end of any principal stage round, the amount a bidder has on deposit with OFCOM for the purposes of the award process is less than the bidder’s financial exposure, as described in paragraph (2), OFCOM may, having regard to the desirability of securing an efficient outcome to the principal stage, notify the bidder that it is required to pay a further sum in pounds as a deposit.

(2) A bidder’s financial exposure after the end of a principal stage round shall be the amount in pounds which is equal to the sum of—

(a) that bidder’s notified posted demand number for 26 GHz lower lots, multiplied by the posted price for 26 GHz lower lots;

(b) that bidder’s notified posted demand number for 26 GHz upper lots, multiplied by the posted price for 26 GHz upper lots; and

(3) The further sum shall be an amount determined by OFCOM such that the total amount that the bidder is required to have on deposit is at most the amount of the bidder’s highest financial exposure after the end of any of the previous principal stage rounds before OFCOM gave notice to the bidder under paragraph (1).

(4) Any such sum must be paid into OFCOM’s bank account with accompanying information which identifies the bidder, by a deadline specified by OFCOM.

(5) Where a bidder does not satisfy the requirements set out in paragraph (4), OFCOM shall notify the bidder of that fact.

Deposit constraint on bidding

56

(1) Where, after the end of a principal stage round, OFCOM has notified a bidder under regulation 55(5) that it has not complied with the requirement to pay a further sum as a deposit, that bidder—

(a) may not bid in the next principal stage round nor in any subsequent principal stage rounds;

(b) shall be deemed in future principal stage rounds:

(i) to have submitted a bid to maintain demand, in respect of a lot type for which it had a notified posted demand of zero following the most recent round; or

(ii) to have submitted a simple set of bids to decrease demand, selected a target number of zero lots and nominated the opening price, in respect of a lot type for which it had a notified posted demand greater than zero following the most recent round.

(c) may not submit an assignment stage form in any assignment stage round and shall be deemed to have made a valid assignment stage bid with a value of zero pounds for each of its assignment stage options.

(2) Such a bidder shall not be excluded from the award process for that reason.

(3) Any principal stage bids made by that bidder may become winning principal stage bids in accordance with regulation 59.

CHAPTER 9 — Publication of information each day

Publication of information at the end of each day during the principal stage

57

After the end of the latest principal stage round to take place on any given day, OFCOM shall publish on their website, in relation to that latest principal stage round—

(a) the posted price for each lot type; and

(b) the excess demand for each lot type.

CHAPTER 10 — End of principal stage

Number of principal stage rounds

58

(1) After the determination of excess demand for each lot type after the end of each principal stage round, OFCOM shall determine if there shall be a further principal stage round.

(2) A further principal stage round shall occur if, after the end of the most recent round, excess demand, for at least one lot type, equals a positive number greater than zero.

(3) If a further principal stage round is not required, the principal stage shall come to an end.

Determination of the winning principal stage bids

59

When OFCOM have determined that there shall not be any principal stage rounds, each bidder shall be recorded as having won—

(a) the number of lots corresponding to that bidder’s notified posted demand number for 26 GHz lower lots following the final principal stage round;

(b) the number of lots corresponding to that bidder’s notified posted demand number for 26 GHz upper lots following the final principal stage round; and

(c) the number of lots corresponding to that bidder’s notified posted demand number for 40 GHz lots following the final principal stage round.

Determination of base price

60

(1) The base price for a 26 GHz lower lot (“26 GHz lower base price”) shall be equal to the posted price for that lot type for the final principal stage round.

(2) The base price for a 26 GHz upper lot (“26 GHz upper base price”) shall be equal to the posted price for that lot type for the final principal stage round.

(3) The base price for a 40 GHz lot (“40 GHz base price”) shall be equal to the posted price for that lot type for the final principal stage round.

Determination of total base price

61

(1) A reference to a winning bidder’s “total 26 GHz lower base price” is a reference to the 26 GHz lower base price multiplied by the number of 26 GHz lower lots won by that bidder.

(2) A reference to a winning bidder’s “total 26 GHz upper base price” is a reference to the 26 GHz upper base price multiplied by the number of 26 GHz upper lots won by that bidder.

(3) A reference to a winning bidder’s “total 40 GHz base price” is a reference to the 40 GHz base price multiplied by the number of 40 GHz lots won by that bidder.

(4) A reference to “total base price” in respect of a bidder, is a reference to the sum of that bidder’s total 26 GHz lower base price (if any), 26 GHz upper base price (if any) and the total 40 GHz base price (if any).

Notification of results to bidders

62

After the end of the final principal stage round, the determination of the winning principal stage bids and the determination of the base price for each winning principal stage bid, OFCOM shall notify each bidder of—

(a) the end of the principal stage;

(b) the names of the winning bidders, and in respect of each of them—

(i) the number of 26 GHz lower lots won and the total 26 GHz lower base price;

(ii) the number of 26 GHz upper lots won and the total 26 GHz upper base price; and

(iii) the number of 40 GHz lots won and the total 40 GHz base price; and

(c) the number of 26 GHz lower lots, the number of 26 GHz upper lots and the number of 40 GHz lots not won by any bidder.

Publication of the results of the principal stage

63

After the notification given in accordance with regulation 62, OFCOM shall publish on their website—

(a) the names of the winning bidders, and in respect of each of them—

(i) the number of 26 GHz lower lots won and the total 26 GHz lower base price;

(ii) the number of 26 GHz upper lots won and the total 26 GHz upper base price; and

(iii) the number of 40 GHz lots won and the total 40 GHz base price.

(b) the number of 26 lower GHz lots, 26 upper GHz lots and 40 GHz lots not won by any bidder.

Required final principal stage deposit

64

(1) After the final principal stage round, a further sum in pounds must be paid into OFCOM’s bank account with accompanying information which identifies the bidder, by a deadline specified by OFCOM (“required final principal stage deposit”).

(2) In respect of any bidder, the required 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 which is that bidder’s total base price.

(3) Where a bidder does not satisfy the requirements set out in paragraph (1) and (2)—

(a) OFCOM shall notify the bidder; and

(b) the bidder shall not be excluded from the award process, but may not make assignment stage bids, and will be deemed to have made valid assignment stage bids with a value of zero pounds for its assignment stage options.

PART 6 — Assignment stage

CHAPTER 1 — Overview

No assignment stage if there are no winning principal stage bidders

65

Where there are no winning bidders following completion of the principal stage, there shall be no assignment stage and no licences shall be granted.

Assignment stage

66

Where there is one winning bidder, or more than one winning bidder, following completion of the principal stage, OFCOM shall determine the assignment of particular numbered lots following the assignment stage process.

Assignment stage process

67

The steps in the assignment stage process are—

(a) step one: the first assignment stage round for the assignment of 40 GHz lots for the first period and the second period, and for the assignment of 26 GHz lower lots for the first period;

(b) step two: the second assignment stage round for the assignment of 26 GHz upper lots for the first period;

(d) step four: the third assignment stage round for the assignment of any 26 GHz lower lots and any 26 GHz upper lots (which were not assigned without bidding under step three) for the second period by bidding.

(2) Step three shall only take place if there are any 26 GHz lower only lot winners, any 26 GHz upper only lot winners or a single 26 GHz double lot winner.

(3) Step four, the third assignment stage round, shall only take place if there are two or more 26 GHz double lot winners.

Bidders

68

(1) Only 26 GHz lower lot winners and 40 GHz lot winners may bid in the first assignment stage round.

(2) Only 26 GHz upper lot winners may bid in the second assignment stage round.

(3) Only 26 GHz double lot winners may bid in the third assignment stage round.

Assignment stage bidder definitions

69

In these Regulations—

(a) “26 GHz lower lot winner” means any winning principal stage bidder who (irrespective of whether they have won 26 GHz upper lots or not and irrespective of whether they have won 40 GHz lots or not) has won 26 GHz lower lots.

(b) “26 GHz lower only lot winner” means any winning principal stage bidder who (irrespective of whether they have won 40 GHz lots or not)—

(i) has won 26 GHz lower lots; and

(ii) has not won 26 GHz upper lots.

(c) “40 GHz lot winner” means any winning principal stage bidder who (irrespective of whether they have won 26 GHz lots or not) has won 40 GHz lots.

(d) “26 GHz upper lot winner” means any winning principal stage bidder who (irrespective of whether they have won 26 GHz lower lots or not and irrespective of whether they have won 40 GHz lots or not) has won 26 GHz upper lots.

(e) “26 GHz upper only lot winner” means any winning principal stage bidder who (irrespective of whether they have won 40 GHz lots or not)—

(i) has won 26 GHz upper lots; and

(ii) has not won 26 GHz lower lots.

(f) “26 GHz double lot winner” means any winning principal stage bidder who (irrespective of whether they have won 40 GHz lots or not) has won 26 GHz lower lots and also 26 GHz upper lots.

CHAPTER 2 — Step one: assignment of 40 GHz lots for the first period and the second period in the first assignment stage round

Bidding for numbered 40 GHz lots for the first period and the second period in the first assignment stage round

70

(1) Any 40 GHz lot winner may bid in the first assignment stage round for the assignment of 40 GHz lots for the first period and the second period.

(2) A 40 GHz assignment stage bid shall be a bid for a licence that authorises the use of frequencies corresponding to the particular numbered 40 GHz lots in a block of numbered 40 GHz lots.

(3) OFCOM shall determine which blocks of numbered 40 GHz lots a bidder may bid for, and notify that bidder of its determination.

(4) The list of possible blocks of numbered 40 GHz lots provided to each bidder may be different for each bidder.

(5) The list shall be known as the “40 GHz lots assignment stage options list” and each block of numbered 40 GHz lots in that list shall be known as a “40 GHz lots assignment stage option”.

Preparing a 40 GHz lots assignment stage options list for each bidder

71

(1) OFCOM shall determine which 40 GHz assignment stage options shall be included in the 40 GHz assignment stage options list for each bidder which is eligible to bid in accordance with paragraph (2).

(2) A bidder’s 40 GHz assignment stage options shall be each of those blocks of numbered 40 GHz lots which satisfy all of the following conditions—

(a) the number of 40 GHz lots contained in the block is equal to the number of 40 GHz lots won within that bidder’s winning principal stage bid for 40 GHz lots;

(b) if that bidder were assigned the 40 GHz lots contained in the block the following two conditions would be satisfied—

(i) each other bidder could be assigned 40 GHz lots contained in a block that, in respect of that other bidder’s winning principal stage bid for 40 GHz lots, satisfies the condition in subparagraph (a);

(ii) the leftover 40 GHz lots not assigned to that bidder or any other bidder (if any) would form a single block of numbered 40 GHz lots.

40 GHz assignment stage bids

72

(1) In order to bid for a 40 GHz assignment stage option, a bidder must, on the assignment stage form, specify either a value of zero pounds or an amount in whole thousands of pounds that it is willing to pay, in addition to the total 40 GHz base price for that bidder’s winning principal stage bid for 40 GHz lots, for a licence that authorises the use of frequencies corresponding to the block of numbered 40 GHz lots that is the 40 GHz assignment stage option.

(2) A bidder may make no more than one 40 GHz assignment stage bid for each 40 GHz assignment stage option.

(3) A bidder is not required to make a 40 GHz assignment stage bid.

(4) A 40 GHz assignment stage bid is a valid 40 GHz assignment stage bid if—

(a) the bid is specified on a valid assignment stage form; and

(b) the bidder has paid the full sum of the required first assignment stage round deposit by the deadline specified by OFCOM.

(5) Where a bidder does not make a valid 40 GHz assignment stage bid for a 40 GHz assignment stage option that bidder will be deemed to have made a valid 40 GHz assignment stage bid with a value of zero pounds for that 40 GHz assignment stage option.

(6) Where there is only one winning principal stage bidder for all of the 40 GHz lots available in the award process, that bidder shall be deemed to have made a valid 40 GHz assignment stage bid with a value of zero pounds for that 40 GHz assignment stage option.

Determination of the winning 40 GHz assignment stage bids

73

(1) OFCOM shall determine the winning 40 GHz assignment stage bids after the deadline for paying the required first assignment stage round deposit.

(2) The winning 40 GHz assignment stage bids shall be those valid 40 GHz assignment stage bids that comprise the winning combination of valid 40 GHz assignment stage bids.

(3) The winning combination of valid 40 GHz assignment stage bids shall be the valid combination of 40 GHz assignment stage bids having the highest total value of amounts bid.

(4) A combination of valid 40 GHz assignment stage bids is a valid combination of 40 GHz assignment stage bids if—

(a) within that combination there is one valid 40 GHz assignment stage bid from each 40 GHz winner;

(b) each of those valid 40 GHz assignment stage bids is for a 40 GHz assignment stage option as determined by OFCOM for the bidder;

(c) no numbered 40 GHz lot is included in more than one of the 40 GHz assignment stage bids included in the combination of valid 40 GHz assignment stage bids; and

(d) the leftover numbered 40 GHz lots not included in that combination of valid 40 GHz assignment stage bids, taken together, form a single block of numbered 40 GHz lots.

(5) Where there is more than one valid combination of 40 GHz assignment stage bids for which the total value is equal highest, OFCOM shall employ a method of random selection from amongst those valid combinations of 40 GHz assignment stage bids for which the value is equal highest to determine the winning combination of valid 40 GHz assignment stage bids.

Determination of 40 GHz lot additional prices

74

In respect of each winning 40 GHz assignment stage bid, OFCOM shall determine an amount in whole pounds (“40 GHz lot additional price”) which shall be payable by the relevant winning bidder in accordance with Schedule 4.

CHAPTER 3 — Step one: assignment of 26 GHz lower lots for the first period in the first assignment stage round

Bidding for numbered 26 GHz lower lots for the first period in the first assignment stage round

75

(1) Any 26 GHz lower lot winner may bid in the first assignment stage round for the assignment of 26 GHz lower lots for the first period.

(2) A 26 GHz lower assignment stage bid shall be a bid for a licence that authorises the use of frequencies for the first period corresponding to the particular numbered 26 GHz lower lots in a block of numbered 26 GHz lower lots.

(3) OFCOM shall determine which blocks of numbered 26 GHz lower lots a bidder may bid for and notify that bidder of their determination.

(4) The list of possible blocks of numbered 26 GHz lower lots provided to each bidder may be different for each bidder.

(5) The list shall be known as the “26 GHz lower assignment stage options list” and each block of 26 GHz lower lots in that list shall be known as a “26 GHz lower assignment stage option”.

Preparing a 26 GHz lower assignment stage options list for each bidder

76

(1) OFCOM shall determine which 26 GHz lower assignment stage options shall be included in the 26 GHz lower assignment stage options list for each bidder which is eligible to bid in accordance with paragraph (2).

(2) A bidder’s 26 GHz lower assignment stage options shall be each of those blocks of numbered 26 GHz lower lots, which satisfy all of the following conditions—

(a) the number of 26 GHz lower lots contained in the block is equal to the number of lots won within that bidder’s winning principal stage bid for 26 GHz lower lots;

(b) if that bidder were assigned the 26 GHz lower lots contained in the block the following two conditions would be satisfied—

(i) each other bidder could be assigned 26 GHz lower lots contained in a block that, in respect of that other bidder’s winning principal stage bid for 26 GHz lower lots, satisfies the condition in subparagraph (a); and

(ii) the leftover 26 GHz lower lots not assigned to that bidder or any other bidder would form a single block of numbered 26 GHz lower lots which would include 26 GHz lot 1;

(i) the block would include 26 GHz lot 7;

(ii) the block would be adjacent to a block of 26 GHz lower lots (assigned to a 26 GHz double lot winner) which would include 26 GHz lot 7; or

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