Explanatory note

These Regulations set out the procedure that will apply to the grant of wireless telegraphy licences at the frequency bands 412.0 megahertz to 414.0 megahertz and 422.0 megahertz to 424.0 megahertz.

A maximum of four licences from a total of fifteen available licences will be granted in accordance with the procedure set out in these Regulations.

To apply a body corporate must deliver the documents required by regulation 5(3) to the Office of Communications (“OFCOM”) on a day specified by OFCOM on their internet website. Information is required about applicants' bidder groups, a term defined in regulation 2(f). An initial deposit of twenty five thousand pounds must also be paid to OFCOM (regulation 5(3)(b)).

Regulation 6 provides for a procedure under which overlaps between applicants' bidder groups can be drawn to the attention of the applicants and time is allowed for applicants to notify OFCOM of any changes to bidder groups which have the effect that such overlaps are removed. An applicant will not be qualified to bid where a member of its bidder group is also a member of another bidder group (regulation 8(2)).

OFCOM will determine which applicants are qualified to bid in the auction, taking into account the matters set out in regulation 8(3). Under regulation 9, OFCOM will publish the identity of all applicants qualified to bid on their internet website and will also notify applicants of the last day when they may withdraw from the award process without forfeiture of the initial deposit.

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 invite the bidder to select which of the fifteen available licences it wishes to purchase. The licence fee will be fifty thousand pounds for each frequency lot comprising the licence. If the bidder does not make a selection or does not pay the licence fee by the required time, the bidder will not be granted a licence and will forfeit sums on deposit held by OFCOM (regulation 12(5)).

Under Part 5, where the number of bidders is more than one, OFCOM will give each bidder a notice, setting out the delivery period within which completed bid documentation must be provided to OFCOM (regulation 15). The bid documentation must be completed in accordance with regulations 16 and 17 and sealed bids submitted in accordance with regulation 18. Bidders must also pay to OFCOM a further deposit (regulation 19).

OFCOM will determine the winning bids and the identity of the winning bidders under Part 5 by following the procedure set out in regulation 24. OFCOM will then grant each winning bidder the licence in respect of which that bidder submitted a winning bid and refund as appropriate any sums due under regulation 25(2).

If in relation to an applicant who is qualified to bid or a bidder, OFCOM are satisfied that certain events are occurring or have occurred and the occurrence would materially affect the outcome of the award process the applicant or bidder concerned will forfeit sums on deposit and may be excluded from the award process (regulation 27).

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