Paragraph 5

(1)

Taking the additional prices for the winning assignment stage bids for paired frequency ranges in the same band together, the opportunity cost variance of those additional prices for winning assignment stage bids for paired frequency ranges in a band calculated in accordance with sub-paragraph (2) shall be less than the opportunity cost variance, calculated in accordance with sub-paragraph (2), of any other prices for the winning assignment stage bids for paired frequency ranges in that band that satisfy the requirements set out in paragraphs 2 to 4.

(2)

The opportunity cost variance (“ $O C V_{A}$ ”) of the prices mentioned in sub-paragraph (1) is the amount calculated in accordance with the formula—

O C V_{A} = {\sum (p_{A} - c_{A})}^{2}

where—

“ $p_{A}$ ” is the price for a winning assignment stage bid; and
“ $c_{A}$ ” is the amount calculated in accordance with the formula set out in sub-paragraph (3) in respect of that winning assignment stage bid.

(3)

The formula is—

c_{A} = u_{A} - t_{A} + b_{A}

where—

“ $u_{A}$ ” is the amount calculated in accordance with sub-paragraph (4);
“ $t_{A}$ ” is the total amount of the winning assignment stage bids; and
“ $b_{A}$ ” is the amount of the winning assignment stage bid for which $p_{A}$ is the price.

(4)

The amount calculated in accordance with this sub-paragraph is the total amount of the valid combination of assignment stage bids or one of the valid combinations of assignment stage bids (as the case may be) for paired frequency ranges in the same band having the highest total value of amounts bid where, for each assignment stage bid for a paired frequency range in that band made by the winning bidder that submitted the winning assignment stage bid for which $p_{A}$ is the price, the amount of that assignment stage bid is treated as if it were zero for the purposes of this sub-paragraph.

(5)

Where the amount of an assignment stage bid is treated as if it were zero under sub-paragraph (4), that assignment stage bid shall be treated as a valid assignment stage bid for the purposes of that sub-paragraph.