The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, has directed the Australian Communications and Media Authority (ACMA) to determine procedures to impose competition limits on the sale of spectrum in the upcoming digital dividend auction.

 

As a result of the Minister’s directions, a competition limit of 2x20 MHz will apply to spectrum in the 700 MHz band and a limit of 2x40 MHz to spectrum in the 2.5 GHz band. No person will be permitted to purchase more than the limit for each band.

 

“These limits are designed to ensure there is a choice of providers in the mobile sector for the advanced services that will be provided over the digital dividend spectrum.  This is a good outcome for Australian consumers,” Senator Conroy said.

 

The limits have been set to ensure a level playing field for the three bidders most likely to participate in the auction—Telstra, Optus and Vodafone Hutchison Australia—without precluding a potential new entrant.

 

“The 700MHz and 2.5GHz bands are important for the evolution of mobile broadband networks. There are therefore strong incentives for auction participants to seek to purchase more spectrum than they need in order to gain a competitive advantage,” Senator Conroy said.

 

Under the proposed limits all bidders have the opportunity to bid on the technically optimal amount of spectrum in both bands.

 

“Industry has been seeking certainty on this issue in the lead up to the digital dividend auction and I am pleased to be able to provide that certainty well in advance of the auction taking place,” Senator Conroy said.

 

The Minister’s decision to direct the ACMA to impose competition limits has been informed by advice from the Australian Consumer and Competition Commission (ACCC) as the independent competition regulator, in consultation with the ACMA.

 

The competition limits directions and associated explanatory statements can be found online at: www.comlaw.gov.au/Browse/ByTitle/LegislativeInstruments/Current#top