Office of Public Sector Information

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations set out the procedure that will apply to the grant of wireless telegraphy licences at frequencies between 10.125 GHz to 10.575 GHz, 27.8285 GHz to 29.4525 GHz, 31.815 GHz to 33.383 GHz and 40.50 GHz to 43.50 GHz.

To apply, a body corporate must deliver the documents required by regulation 4(3) to the Office of Communications (“OFCOM”) on a day specified by OFCOM on their internet website. An initial deposit of twenty-five thousand pounds must also be paid to OFCOM (regulation 4(3)(b)).

An applicant will not be qualified to bid where a member of its bidder group is also a member of another bidder group (regulation 7(2)). OFCOM will determine which applicants are qualified to bid in the auction, taking into account the matters set out in regulation 7(3). Under regulation 8, OFCOM will publish the names of all applicants qualified to bid on their internet website.

OFCOM will follow the procedure in Part 4 of these Regulations where there is only one bidder, or the procedure in Part 5 of these Regulations where there is more than one bidder.

Under Part 4, where there is only one bidder OFCOM will give the bidder a notice, setting out the deadline by when the completed paired frequency range selection menu must be provided to OFCOM and the deadline by when the bidder must transfer to OFCOM the balance of the licence fee (regulation 11).

Under Part 5, the process for the award of licences will consist of three stages.

The first stage, called the principal stage, is the procedure set out in Chapters 2 to 5 of Part 5. During the principal stage there will be an auction with at least two rounds during which bidders will be able to make bids for lots (a term defined in regulation 2(2)). OFCOM will determine the winning bids in accordance with regulation 41, and will determine the price payable in respect of each winning bid in accordance with regulation 42 and Schedule 8.

The second stage, called the assignment stage, is the procedure for determining the paired frequency ranges (a term defined in regulation 2(2)) that are to be assigned to each winning bidder. OFCOM will determine the winning assignment stage bids in accordance with the requirements of regulation 57, and the price payable in respect of each winning assignment stage bid in accordance with regulation 58 and Schedule 9.

The third stage, called the grant stage, is the procedure set out in Chapter 8 of Part 5. OFCOM will grant licences to winning bidders and refund any sums due to winning bidders under regulation 62(1)(b).

If in relation to an applicant which is qualified to bid or a bidder OFCOM are satisfied that certain events are occurring or have occurred and that the occurrence would materially affect the outcome of the award process, the applicant or bidder concerned will forfeit sums on deposit held by OFCOM and may be excluded from the award process (regulation 64).

A full regulatory impact assessment of the effect of these Regulations will have on the cost to business has been prepared. Copies of the impact assessment and copies of the publication referred to on page 20 of these Regulations are available to the public from the OFCOM library at Riverside House, 2a Southwark Bridge Road, London SE1 9HA, telephone 020 7981 3000 or on the OFCOM internet website at www.ofcom.org.uk. Copies of the impact assessment have also been placed in the libraries of both Houses of Parliament.