Office of Public Sector Information

EXPLANATORY NOTE

(This note is not part of the Order)

These Regulations set out the procedure that will apply to the grant of wireless telegraphy licences at the frequency between 1452 MHz to 1492 MHz.

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 fifty 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 lot 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 two stages.

The first stage, called the auction stage, is the procedure set out in Chapters 2 to 5 of Part 5. During the auction stage there will be an auction with at least two rounds during which bidders will be able to make bids for a selection of lots (a term defined in regulation 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 43 and Schedule 6.

The second stage, called the grant stage, is the procedure set out in Chapter 6 of Part 5. OFCOM will grant licences to winning bidders and refund any sums due to winning bidders under regulation 47(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 49).

A full regulatory impact assessment of the effect 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 19 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.