4. Purpose of the Tune-up Currently two bodies of work Reallocation process – commenced on 10 February 2015 with the release of the discussion paper Interim access – discussion paper released 19 February 2015 Purpose of this Tune-up To allow stakeholders another opportunity to raise issues or ask questions about current regional 1800 MHz band issues.

5. Current licensing arrangements and use Band (MHz) MetroRegionalRemote 1710–1725/1805–1820 MHz (2 x 15 MHz)Spectrum Apparatus 1725–1785/1820–1880 MHz (2 x 60 MHz)SpectrumApparatus

6. 1800 MHz band overview Emerging demand - LTE 1800 MHz band is used for LTE deployments globally availability of LTE equipment growth of machine-to-machine technology economies of scale Services suited to the 1800 MHz band mobile phone and broadband services smart networks/energy grids automated systems such as transport

8. Spectrum licensing Spectrum licensing features: Technology flexible Fully tradeable Can be amalgamated, divided or reassigned, in part or in whole, to third parties Align the expiry dates with reissued licences - 17 June 2028 Potential for early access to spectrum won at auction

9. Reallocation process

10. Reallocation timeline

11. Consultation on draft recommendation Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

12. Licence type Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

13. Licence type Spectrum licensing features: Technology flexible Fully tradeable Can be amalgamated, divided or reassigned, in part or in whole, to third parties Align the expiry dates with reissued licences - 17 June 2028 Potential for early access to spectrum won at auction

14. ‘Early access’ apparatus licensing

15. Parts of the spectrum Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

16. Two options: Reallocate the entire 2 x 60 MHz Reallocate a lesser amount - 2 x 55 MHz or 2 x 45 MHz Benefits of 2 x 60 MHz: the most transparent method of identifying the highest value use of the entire band. Parts of the spectrum

17. Reallocation period and deadline Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

18. Reallocation period and deadline

20. Other matters Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

21. Allocation methodology Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots three small parts of the spectrum in the wider 1800 MHz band

22. Allocation methodology Open outcrySMRCCA Most commonSimple/flexible. Has been used by the ACMA and predecessors in the past Complex. Was used by the ACMA in the 700 MHz and 2.5 GHz auction Suitable when there are a limited number of lots available and when lots are not interdependent or substitutable Suitable when lots are interdependent or substitutable Suitable where the value of an individual lot depends significantly on what other lots that bidder can acquire Lots are auctioned sequentially Multiple items are auctioned simultaneously Bidders determine which packages they would like to bid on. Bidding occurs on one lot at a time Bidding occurs in a sequence of rounds Bidding occurs on packages of lots (one or more)

23. Lot configuration Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

24. Geographic area: proposed lots boundaries (option 2) Geographic lot configuration Defined areas 1 Darwin 2 North Queensland (Cairns/Townsville) 3 Central Queensland (Mackay) 4 South Queensland (Maryborough) 5 Northern New South Wales (Grafton) 6 Western New South Wales (Dubbo) 7 Canberra (including south coast of NSW) 8 Southern New South Wales/Riverina (Albury) 9 Regional Victoria 10 Tasmania 11 Regional South Australia 12 Regional Western Australia

25. Allocation of residual lots Comments sought on: Draft recommendation Licence typeSpectrum licences Parts of the spectrum 1725–1785 MHz and 1820–1880 MHz (a total of 2 x 60 MHz) in regional Australia Reallocation periodTwo years in all parts of the spectrum Reallocation deadline 12 months before the end of the reallocation period Other matters Allocation methodology SMR Lot configuration2 x 5 MHz segments in 12 geographic areas Allocation of residual lots Three small parts of the spectrum in the wider 1800 MHz band

26. Allocation of residual lots Residual lots Unallocated spectrum from the recent ESL process for the 1800 MHz band

27. Next steps 1. Draft s.153F recommendation2. Final recommendation3. s.153B Ministerial declaration4. Draft allocation instruments5. Final allocation instruments6. Auction

31. Interim access - overview Overview Consideration of current uses versus likely future use Reallocation process/long term licensing arrangements Reallocation process concludes mid 2017 (after licence issue) Parts of the band remain unallocated but are available Consideration of early access/interim access

32. Overview Interim access arrangements Why? There is a significant commercial interest to deploy mobile services using LTE technology. The ACMA considers it better to have spectrum utilised than not. Where? Potentially vacant parts of the regional 1800 MHz band.

33. Establishing interim access model Key considerations Legal issues (legislation) Spectrum availability Management of interference and coordination Uncertainty of auction outcome Potential limitations for ‘early access’ after auction

34. Criteria for interim access Criteria for an interim licensing policy: Transparent Equitable Efficient Practical and workable Timely

35. Features of interim access Comments sought on: Features of interim access Embargo exemption (Embargo 62) Licence type – PTS apparatus Tax arrangements Coordination arrangements (RALI MS34) Tenure of interim access Option 1 - Operation until the auction Option 2 - Operation until the end of the reallocation period (UIOLI) Modified priority assignment model Three stage process to assign interim apparatus licences

37. Features of interim access Comments sought on: Features of interim access Embargo exemption (Embargo 62) Licence type – PTS apparatus Tax arrangements Coordination arrangements (RALI MS34) Tenure of interim access Option 1 - Operation until the auction Option 2 - Operation until the end of the reallocation period (UIOLI) Modified priority assignment model Three stage process to assign interim apparatus licences

38. Features of interim access Interim access arrangements What? Authorise access to the regional 1800 MHz band before a market-based allocation of spectrum licences. When?As soon as possible How? Embargo exemptions for PMTS Class B apparatus licence How much? Calculated using PMTS Class B licence tax arrangements current at the time of application.

39. Tenure of interim access Comments sought on: Features of interim access Embargo exemption (Embargo 62) Licence type – PTS apparatus Tax arrangements Coordination arrangements (RALI MS34) Tenure of interim access Option 1 - Operation until the auction Option 2 - Operation until the end of the reallocation period (UIOLI) Modified priority assignment model Three stage process to assign interim apparatus licences

40. Two options: 1.Interim access licensing until auction winners are known 2.Interim access licensing would be in effect until end of reallocation period, at which time spectrum licences would take effect Tenure of interim access

42. Modified priority assignment model Comments sought on: Features of interim access Embargo exemption (Embargo 62) Licence type – PTS apparatus Tax arrangements Coordination arrangements (RALI MS34) Tenure of interim access Option 1 - Operation until the auction Option 2 - Operation until the end of the reallocation period (UIOLI) Modified priority assignment model Three stage process to assign interim apparatus licences

44. Getting an interim licence How does it work? Streamlined embargo exemption process 3 stage process – to reduce potential for conflicting assignments Only issue licences in those areas where sufficient spectrum is available for four parties. Amount of spectrum available determined on a site-by-site basis Spectrum assigned according to assignment priority – lowest frequency up: Telstra  VHA  Optus  Other Applications for licences in the ‘Other’ spectrum assessed on first- in-time basis, using the same procedure defined for the 2.1 GHz and 3.6 GHz band releases

45. Embargo Exemption >Streamlined process >Licensees/APs can assume an exemption is granted if: >Applications adhere to RALI MS34 >Applications are submitted during the application window >Proposed sites are located within regional Australia >Spectrum availability requirements for each stage are met (i.e. 60 MHz, ≥40 MHz or ≥20 MHz) >Individual spectrum acquisition limits for each stage are met (i.e. 2x15 MHz, 2x10 MHz or 2x5 MHz)

46. Next steps - Interim access process StageKey stepsIndicative timings CurrentFinalise interim access policyNone available Stage 1 Initial notification period and application window one where 2 x 60 MHz of spectrum available Maximum of 2 x 15 MHz per licensee Notification period (NP): 2 weeks Application window (AW) 1: 2 weeks from the end of the initial notification period Commence as soon as possible Stage 2 Notification period and application window two where at least 2 x 40 MHz of spectrum is available maximum of 2 x 10 MHz per licensee NP: 2 weeks AW 2: 2 weeks Cannot commence until all stage 1 licences are issued Stage 3 Notification period and application window three where at least 2 x 20 MHz of spectrum is available maximum of 2 x 5 MHz per licensee NP: 2 week AW 3: 2 week Cannot commence until all stage 2 licences are issued Completion of all three stages: 3 months (approx.)

47. Determining the amount of spectrum available >Assess availability of every channel at proposed site >Use parameters of proposed system (i.e. antenna gain, tilt, tx power etc) >Frequency assignment conducted as per RALI MS34 >Co-existance with fixed links >Amount of spectrum available is the number of 5 MHz paired channels that can be successfully assigned

48. Assignments >Spectrum assigned according to assignment priority – lowest frequency up: Telstra  VHA  Optus  Other >Applications for licences in the ‘Other’ spectrum assessed on first-in-time basis, using the same procedure defined for the 2.1 GHz and 3.6 GHz band releases >There is a risk of conflicting assignments during the assignment of 10 MHz and 5 MHz channels. >Prospective licensees should be aware: >licensees will not be afforded protection from interference that occurs from other interim access PTS licences issued in the same stage

51. Wrap up The ACMA is managing two processes concurrently: 1.long term reallocation process Consultation ends 11 March 2015. 2.interim access process Consultation ends 20 March 2015

52. Questions Supplementary Slides

53. Modified priority assignment model FrequencyChannel 2x5 MHzRegional 1710/1805 MHz 1785/1880 MHz 1 Currently spectrum licensed 2 3 4 Telstra (2 x 15 MHz) 5 6 7 VHA (2 x 15 MHz) 8 9 10 Optus (2 x 15 MHz) 11 12 13 Other* (2 x 15 MHz) 14 15 * Licensees would be issued within this segment on a ‘first-in-time’ basis

54. Assigning 10 MHz Channels – 1 Channel 2x5 MHzAvailabilityRegional 1Not assessed Currently spectrum licensed 2Not assessed 3 4Available Telstra (2 x 10 MHz) 5Available 6 VHA (2x 5 MHz) 7Not Available Not assigned 8Available VHA (2x 5 MHz) 9Available Optus (2 x 10 MHz) 10Available 11Available Other* (2 x 10 MHz) 12Available 13Not Available Not assigned 14Available 15Not Available * Licensees would be issued within this segment on a ‘first-in-time’ basis

55. Assigning 10 MHz Channels – 2 Channel 2x5 MHzAvailabilityRegional 1Not assessed Currently spectrum licensed 2Not assessed 3 4Available Telstra (2 x 10 MHz) 5Available 6 Not assigned 7Not Available 8Available VHA (2 x 10 MHz) 9Available 10Available Optus (2 x 10 MHz) 11Available 12Available Other (2 x 10 MHz) 13Available 14Available Not assigned 15Not Available * Licensees would be issued within this segment on a ‘first-in-time’ basis

56. 1800 MHz  First-in-time application process >During application window applicants submit a completed RO57 form and nominate an Accredited Person (AP) >The order applications are received is recorded by the ACMA >Based on this order of received applications, the ACMA will notify the APs to conduct frequency assignment work >Once all licences have been issued for a particular application, the ACMA will notify the AP for the next application on the list. >APs must coordinate with any services licensed first-in-time >Refer to the process described for the 3.6 GHz band: http://www.acma.gov.au/theACMA/release-of-the-36-ghz-band-in- regional-and-remote-areas http://www.acma.gov.au/theACMA/release-of-the-36-ghz-band-in- regional-and-remote-areas