Monday, 19 September 2011

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.

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. The auction is expected to take place next year.