Australian Mobile Telecommunications Association CEO Chris Althaus welcomed the ACMA’s selection of an auction model as the next step in the spectrum allocation process, but is keen to see ongoing consultation between industry and the ACMA and the provision of more key details to help mobile players firm up their investment plans.

The Australian Communications and Media Authority has announced it will use a Combinatorial Clock Auction format for the sale of digital dividend spectrum.

“The Combinatorial Clock Auction, otherwise known as CCA, has already been used successfully overseas and is the methodology most likely to produce an efficient allocation of spectrum,” said ACMA Chairman, Chris Chapman.

Mr Althaus said although the announcement was a step in the right direction, industry had a pressing requirement for more details to gain confidence to start making major investment plans.

"This is good progress, in a sense - but if this is the framework, we're now looking forward to timely provision of the detail that's going to go into the framework. For example, when will spectrum be made available for use and what will the auction lot size be?" he told Communications Day earlier this week. "A map of the whole process would be a useful thing, but ultimately the timely provision of information and keeping this process moving is important."

The CCA is an auction method used to sell multiple items in a single auction process. It will allow bidders to bid on packages of spectrum in both the 700 MHz and 2.5 GHz bands, offering them the opportunity very importantly to acquire the specific combinations of spectrum which best meet their business needs.

The CCA is well suited to auctions where the value of an individual lot to a bidder depends significantly on what other lots that bidder can acquire. The winning bidders then are those that make the highest value combination of bids.

“This decision paves the way for a successful auction, which is expected to take place in late 2012,” said Mr Chapman.

Digital dividend spectrum includes spectrum that will be auctioned in the 700 MHz and 2.5 GHz bands. This auction is part of the ACMA’s strategy to address exponential demand for spectrum for wireless broadband and provide an opportunity to bring new services to the Australian market – such as 4th generation (4G) mobile services.

The ACMA will hold a Digital Dividend Auction Tune-Up on Friday 4 November 2011. This event will provide potential auction participants with an opportunity to hear about the ACMA’s work on preparing for the auction, including its development of the detailed CCA auction rules. Anyone interested in attending the tune-up should email majorspectrumallocations@acma.gov.au.

The Digital Dividend Auction Tune-Up will be just one part of the ACMA’s ongoing intensive engagement with potential bidders over the next 12 months. It will be followed in 2012 with a series of workshops and training sessions, as well as consultation around the auction rules.

Further information on the auction system and auction format can be found on the ACMA’s new Realising the digital dividend site.