2025 No. 669
Electronic Communications
The Wireless Telegraphy (Licence Award) Regulations 2025
Made
10th June 2025
Coming into force
30th June 2025
The Office of Communications (“OFCOM”), in exercise of the powers conferred by sections 14(1), (2), (3), (4), (6) and (7) and 122(7) of the Wireless Telegraphy Act 2006 (“the Act”), make the following Regulations.
Before making these Regulations OFCOM have given notice of their proposal to do so in accordance with section 122(4)(a) of the Act, published notice of their proposal in accordance with section 122(4)(b) of the Act and have considered the representations made to them before the time specified in that notice in accordance with section 122(4)(c) of the Act.
(1) These Regulations may be cited as the Wireless Telegraphy (Licence Award) Regulations 2025 and shall come into force on 30th June 2025.
(2) These Regulations shall not extend to the Channel Islands or the Isle of Man.
(1) In these Regulations—
“26 GHz double lot winner” has the meaning given in regulation 69(f);
“26 GHz lot second period assignment stage bid” has the meaning given in regulation 86(2);
“26 GHz lot second period assignment stage option” has the meaning given in regulation 86(6);
“26 GHz lot second period assignment stage options list” has the meaning given in regulation 86(6);
“26 GHz lot second period additional price” has the meaning given in regulation 90;
“26 GHz lot second period licence” has the meaning given in regulation 102(d);
“26 GHz lower assignment stage bid” has the meaning given in regulation 75(2);
“26 GHz lower assignment stage option” has the meaning given in regulation 75(5);
“26 GHz lower assignment stage options list” has the meaning given in regulation 75(5);
“26 GHz lower base price” has the meaning given in regulation 60(1);
“26 GHz lower lot first period licence” has the meaning given in regulation 102(b);
“26 GHz lower lot first period additional price” has the meaning given in regulation 79;
“26 GHz lower lot winner” has the meaning given in regulation 69(a);
“26 GHz lower only lot winner” has the meaning given in regulation 69(b);
“26 GHz upper assignment stage bid” shall be construed in accordance with regulation 80(2);
“26 GHz upper assignment stage option” has the meaning given in regulation 80(5);
“26 GHz upper assignment stage options list” has the meaning given in regulation 80(5);
“26 GHz upper base price” has the meaning given in regulation 60(2);
“26 GHz upper lot first period licence” has the meaning given in regulation 102(c);
“26 GHz upper lot first period additional price” has the meaning given in regulation 84;
“26 GHz upper lot winner” has the meaning given in regulation 69(d);
“26 GHz upper only lot winner” has the meaning given in regulation 69(e);
“40 GHz assignment stage bid” shall be construed in accordance with regulation 70(2);
“40 GHz assignment stage option” has the meaning given in regulation 70(5);
“40 GHz assignment stage options list” has the meaning given in regulation 70(5);
“40 GHz base price” has the meaning given in regulation 60(3);
“40 GHz licence” has the meaning given in regulation 102(a);
“40 GHz lot winner” has the meaning given in regulation 69(c);
“40 GHz lot additional price” has the meaning given in regulation 74;
“additional deposit” has the meaning given in regulation 13;
“additional price” means the 40 GHz lot additional price, the 26 GHz lower lot first period additional price, the 26 GHz upper lot first period additional price or the 26 GHz lot second period additional price;
“all or nothing set of bids to decrease demand” shall be construed in accordance with regulation 30;
“applicant” means a body corporate making an application for a licence;
“applicant group” means in relation to an applicant—
that applicant;
each associate of that applicant; and
each person in respect of whom the applicant has delivered to OFCOM a completed document in the form set out in Schedule 3;
“assignment stage” has the meaning given in regulation 15;
“assignment stage bid” means a 40 GHz assignment stage bid, a 26 GHz lot second period assignment stage bid, a 26 GHz lower assignment stage bid or a 26 GHz upper assignment stage bid;
“assignment stage form” shall be construed in accordance with regulation 92;
“assignment stage option” means a 40 GHz assignment stage option, a 26 GHz lot second period assignment stage option, a 26 GHz lower assignment stage option or a 26 GHz upper assignment stage option;
“associate” means, in relation to an applicant or bidder, a person who has a material interest in that applicant or bidder;
“authorised person” means a person specified by an applicant in its application as authorised to bind that applicant for all purposes relating to the award process;
“auction system” means the online system established by OFCOM for bidders to participate in the award process or such other electronic or manual system which OFCOM may substitute;
“bidder” means an applicant which has qualified to bid in the award process and which has not withdrawn from the award process on or before the last day for withdrawal;
“bidder group” shall be construed in accordance with regulation 6(3);
“clock price” has the meaning given in regulation 26;
“confidential information” means, in relation to any applicant or bidder, any information which is not in the public domain and which, if it were made public or disclosed to another applicant (or potential applicant) or bidder or a member of their respective applicant or bidder group, would be likely to affect decisions that such other applicant (or potential applicant) or bidder may make in relation to the award process;
“current eligibility capacity” shall be construed in accordance with regulation 42;
“current excess demand” shall be construed in accordance with regulation 40;
“currently selected demand” shall be construed in accordance with regulation 39;
“currently used eligibility points” shall be construed in accordance with regulation 42;
“deadline”, in relation to any requirement imposed on any person by or under these Regulations, means (as the case may require)—
the time;
the date; or
the date, and the time on that date;
by which that requirement must be fulfilled by that person;
“designated areas” means the areas of the United Kingdom described as being high density areas in the OFCOM publication “mmWave Spectrum Access Licences: High Density Areas”;
“eligibility limit” means, in relation to a bidder, a number of eligibility points which limits the bids that may be made by the bidder in a principal stage round;
“eligibility rule” shall be construed in accordance with regulation 50;
“excess demand” means the number determined by OFCOM in accordance with regulations 24 and 49;
“first period” means the period from the grant of the licence until 30th June 2029;
“financial exposure” shall be construed in accordance with regulation 55(2);
“GHz” means gigahertz;
“grant stage” has the meaning given in regulation 15;
“initial deposit” shall be construed in accordance with regulation 4(3)(b);
“last day for withdrawal” has the meaning given in regulation 11;
“licence” means a wireless telegraphy licence to be granted pursuant to these Regulations to establish or use a wireless telegraphy station or install or use wireless telegraphy apparatus (within designated areas) at frequencies comprised in one or more of the 26 GHz lots or 40 GHz lots to be determined in accordance with the procedure set out in these Regulations;
“material interest” means, whether held directly or indirectly, any interest (construed in accordance with sections 820 to 825 of the Companies Act 2006) in—
any share which carries, or any shares which together carry, more than twenty-five per cent of the votes entitled to be cast at a general meeting of the applicant or bidder; or
any share or shares in the case where the consent of the holder of that share or those shares is required for the conduct of any business of the applicant or bidder; or
the right to appoint or remove a majority of the applicant’s or bidder’s board of directors;
“most recent round” means the principal stage round that has most recently ended;
“notified posted demand number” shall be construed in accordance with regulation 25(c);
“OFCOM” means the Office of Communications;
“OFCOM’s bank account” means the bank account nominated by OFCOM for the purposes of the award process, details of which are published on their website;
“opening price” has the meaning given in regulation 26;
“posted demand number” means the number determined for each bidder for each lot type in accordance with regulations 22(2), 46 or 47;
“posted price” in respect of any lot type means the price determined in accordance with regulations 23 or 48;
“pounds” means pounds sterling;
“price level” is a price expressed in whole thousands of pounds;
“principal stage” has the meaning given in regulation 15;
“principal stage bid” shall be construed in accordance with regulation 17;
“principal stage round” shall be construed in accordance with regulation 16;
“ranking list” has the meaning given in regulation 35;
“required final principal stage deposit” shall be construed in accordance with regulation 64;
“required first assignment stage round deposit” has the meaning given in regulation 98;
“required second assignment stage round deposit” has the meaning given in regulation 99;
“required third assignment stage round deposit” has the meaning given in regulation 100;
“round” means a period of time specified by OFCOM during which bidders may make bids in accordance with the procedure set out in these Regulations;
“second period” means the period (partially overlapping with the first period) after 1st January 2029 until the date of expiry of the licence;
“set of bids to decrease demand” has the meaning given in regulation 30(13);
“set of bids to increase demand” has the meaning given in regulation 29(3);
“set of bids to maintain demand” has the meaning given in regulation 28(2);
“simple set of bids to decrease demand” shall be construed in accordance with regulation 30;
“target number” shall be construed in accordance with regulation 27(2);
“time period for bidding” means, in relation to any round, the times when the auction system is open for submission of bids;
“total 26 GHz lower base price” has the meaning given in regulation 61(1);
“total 26 GHz upper base price” has the meaning given in regulation 61(2);
“total 40 GHz base price” has the meaning given in regulation 61(3);
“total auction sum” shall be construed in accordance with regulation 113;
“total base price” has the meaning given in regulation 61(4);
“valid 26 GHz lot second period assignment stage bid” shall be construed in accordance with regulation 88(4);
“valid 26 GHz lower assignment stage bid” shall be construed in accordance with regulation 77(4);
“valid 26 GHz upper assignment stage bid” shall be construed in accordance with regulation 82(4);
“valid 40 GHz assignment stage bid” shall be construed in accordance with regulation 72(4);
“valid assignment stage bid” means a valid 26 GHz lower assignment stage bid, a valid 26 GHz upper assignment stage bid, a valid 26 GHz lot second period assignment stage bid and a 40 GHz assignment stage bid;
“valid assignment stage form” shall be construed in accordance with regulation 94;
“winning bidder for 26 GHz lower lots” means a bidder who made bids for 26 GHz lower lots which became winning principal stage bids in accordance with regulations 59;
“winning bidder for 26 GHz upper lots” means a bidder who made bids for 26 GHz upper lots which became winning principal stage bids in accordance with regulations 59;
“winning bidder for 40 GHz lots” means a bidder who made bids for 40 GHz lots which became winning principal stage bids in accordance with regulations 59; and
“winning principal stage bidder” means a bidder which won lots in the principal stage.
(2) A reference in these Regulations to a “a 26 GHz lot”, a “26 GHz lower lot”, a “26 GHz upper lot”, or a “40 GHz lot” shall be construed in accordance with Schedule 1.
(3) A reference in these Regulations to a “lot”, “type of lot” or “lot type” shall be construed in accordance with Schedule 1.
(4) A reference in these Regulations to a numbered 26 GHz lot, a numbered 40 GHz lot or a “block” of such lots shall be construed in accordance with Schedule 1.
(1) Only a body corporate may apply to OFCOM for a licence.
(2) A body corporate may only make one application.
(3) To apply for a licence, a body corporate must—
(a) on the day or days specified by OFCOM for receipt of applications, deliver to OFCOM using the delivery method specified by OFCOM, within the times on that day or those days specified by OFCOM—
(i) a document containing the application information required by, and the warranty set out in, Schedule 2, completed in respect of the applicant and signed on its behalf by two authorised persons;
(ii) for each person, not being an associate of the applicant, which the applicant wishes to join its applicant group, a document in the form set out in Schedule 3 which has been—
(aa) completed by the applicant and signed on its behalf by two authorised persons; and
(bb) completed by and signed by or on behalf of the person in respect of whom that document is completed; and
(b) by a deadline specified by OFCOM, pay into OFCOM’s bank account, with accompanying information which identifies the applicant, an initial deposit of one million pounds.
(4) OFCOM shall publish the delivery method, the day or days, times and deadline on their website.
(5) The delivery method to be specified and published by OFCOM may require delivery of original signed documents to OFCOM premises or electronic delivery of an electronic version of originally signed documents.
5 Notification of names of applicants and associates
(1) OFCOM shall give notice to each applicant of—
(a) the name of each other applicant and the names of their associates; and
(b) the deadline by which each applicant must notify OFCOM under paragraph (3).
(2) On receipt of that notice, each applicant must examine the names of the other applicants and their associates and determine whether any member of its applicant group is also an associate of another applicant or is also an applicant.
(3) Where an applicant determines that a member of its applicant group is also an associate of another applicant or is also an applicant, it must notify the other applicant and OFCOM of that fact by the deadline specified by OFCOM.
(4) If it appears to OFCOM from any application or notice that a member of one applicant group is also a member of another applicant group, OFCOM shall give notice to each of the applicants concerned of that fact and specify a deadline by when each applicant concerned must notify OFCOM of any change in circumstances the effect of which is that no member of its applicant group is also a member of another applicant group.
(1) Where there has been a change in the composition of an applicant’s applicant group since the date of the application, that applicant must deliver to OFCOM revised versions of the documents provided under 4(3)(a)(i) and 4(3)(a)(ii) which comply with those provisions following that change.
(2) OFCOM shall record the members of each applicant group, taking account of any changes notified under paragraph (1).
(3) Each applicant group so recorded shall constitute a bidder group.
(1) An applicant or bidder may change its bidder group but, in relation to the award process, the applicant or bidder shall be subject to regulations 9(2), 121 and 123 if they apply to any such change.
(2) If a change involves the addition or departure of an associate, the applicant or bidder must notify OFCOM of the change and deliver to OFCOM a revised version of the documents provided under regulation 4(3)(a)(i) which comply with those provisions following the change.
(3) If a change involves the addition of a person who is not an associate of the applicant or bidder to its bidder group, the applicant or bidder must deliver to OFCOM a document in the form set out in Schedule 3 completed by the applicant or bidder and signed on its behalf by two authorised persons and completed by and signed by or on behalf of the person in respect of whom that document is completed.
(1) OFCOM shall, for each applicant which has submitted an application in accordance with regulation 4, determine whether that applicant is fit to hold a licence.
(2) In making their determination under paragraph (1), OFCOM shall take into account—
(a) any direction given by the Secretary of State to OFCOM under section 5 of the Communications Act 2003;
(b) whether the applicant is a fit and proper person to hold a licence having regard to the probity of—
(i) the applicant;
(ii) each other member of the applicant’s bidder group; and
(iii) each director of each member of the applicant’s bidder group;
(c) whether any of the information submitted to OFCOM by the applicant in connection with the award process is false or misleading;
(d) whether any member of the applicant’s bidder group has colluded, or attempted to collude, or is colluding or attempting to collude, with another person to distort the outcome of the award process;
(e) whether any member of the applicant’s bidder group has acted or is acting in a way which is likely to distort the outcome of the award process;
(f) whether any member of the applicant’s bidder group, or any person to whom confidential information has been disclosed, has disclosed, or is disclosing or attempting to disclose or has incited or is inciting another person to disclose, any confidential information, whether directly or indirectly, to any person, except where the disclosure is—
(i) to OFCOM;
(ii) to a member of the applicant’s bidder group;
(iii) to a provider of finance for the purpose of raising finance for the applicant’s application; or
(iv) to a person for the purpose of enabling that person to decide whether to participate as a member of the applicant’s bidder group;
(g) whether any member of the applicant’s bidder group has obtained or is obtaining or attempting to obtain confidential information relating to another applicant;
(h) whether any member of the applicant’s bidder group is receiving or is attempting to receive services in relation to the award process from any person who has provided or is providing services to OFCOM in relation to the award process; and
(i) whether any person who is a member or a director or an employee of a member of the applicant’s bidder group and is also a director or an employee of a member of another bidder group is—
(i) taking part in the preparation of both bidder groups for participation in the award process; or
(ii) receiving confidential information relating to both bidder groups.
(3) Applicants must, if requested to do so by OFCOM, provide by a deadline specified by OFCOM any information or documentation which OFCOM require to make their determination.
(4) If an applicant does not provide such information or documentation by the deadline specified by OFCOM, OFCOM shall also take that fact into account in making their determination.
(5) Where OFCOM determine that an applicant is not fit to hold a licence the applicant shall be disqualified from the award process.
(6) OFCOM shall inform an applicant which is disqualified of their decision and the reasons for it but that applicant’s initial deposit shall not be forfeited because of that decision.
9 Qualification to participate in the award process
(1) Each applicant—
(a) which was not disqualified under regulation 8; and
(b) which has no member of its bidder group which is also a member of the bidder group of another applicant (which was not disqualified under regulation 8),
shall be qualified to participate in the award process.
(2) An applicant which has a member of its bidder group which is also a member of the bidder group of another applicant shall not be qualified to participate in the award process.
(3) Where an applicant is not qualified to participate in the award process, OFCOM shall inform that applicant of that fact but that applicant’s initial deposit shall not be forfeited for that reason.
(1) OFCOM shall notify each applicant qualified to participate of—
(a) the name of each other applicant who is so qualified; and
(b) the names of their associates.
(2) OFCOM shall publish the names of all applicants who are so qualified on OFCOM’s website.
(1) OFCOM shall notify each applicant qualified to participate of the last day for withdrawal from the award process (“last day for withdrawal”) and shall publish the last day for withdrawal on OFCOM’s website.
(2) If, on or before the last day for withdrawal, OFCOM receives notice from an applicant that it wishes to withdraw its application, signed by two authorised persons, the application shall be withdrawn and the applicant shall be excluded from the award process but that applicant’s initial deposit shall not be forfeited for that reason.
(3) That applicant shall not be re-admitted to the award process.
(4) OFCOM shall notify all other applicants of the withdrawal.
(1) An applicant may not withdraw from the award process after the last day for withdrawal.
(2) After the last day for withdrawal, OFCOM shall determine the number of bidders.
(3) Where there are no bidders, OFCOM shall complete the award process by refunding to applicants which were not qualified, or withdrew in accordance with regulation 11, their initial deposit (where such deposit has not been forfeited) but not any interest which has accrued on the deposit.
(4) Where there are one or more bidders—
(a) OFCOM shall refund to applicants which were not qualified, or withdrew in accordance with regulation 11, their initial deposit (where such deposit has not been forfeited) but not any interest which has accrued on the deposit;
(b) OFCOM shall grant licences in accordance with the procedure set out in these Regulations and;
(c) OFCOM shall publish the names of the bidders on OFCOM’s website.
13 Additional deposit before the first principal stage round
(1) A bidder which wishes to participate in the principal stage may pay, in addition to the initial deposit, a deposit (the “additional deposit”) which shall be taken into account by OFCOM in accordance with regulation 14 for the purpose of calculating the bidder’s eligibility limit for the first principal stage round.
(2) To pay the additional deposit, a bidder must, by a deadline specified by OFCOM, pay the additional deposit into OFCOM’s bank account with accompanying information which identifies the bidder.
(3) After the deadline specified under paragraph (2), OFCOM shall determine each bidder’s eligibility limit for the first principal stage round.
14 Determination of a bidder’s eligibility limit for the first principal stage round
(1) A bidder’s eligibility limit for the first principal stage round shall be—
(a) where the amount which the bidder has on deposit (including the initial deposit and the additional deposit) is less than thirty-nine million pounds, the number which is the amount of such deposit in pounds divided by one million;
(b) where the amount which the bidder has on deposit (including the initial deposit and the additional deposit) is equal to or more than thirty-nine million pounds, thirty-nine eligibility points.
(2) Where the number which results from the calculation in paragraph (1)(a) is not a whole number, the bidder’s eligibility limit shall be that number rounded down to the nearest whole number.
(3) That number shall be expressed as a number of eligibility points.
15 Principal stage, assignment stage and grant stage
(1) The process for the award of licences shall consist of the procedure set out in Part 5 (“principal stage”), the procedure set out in Part 6 (“assignment stage”) and the procedure set out in Part 7 (“grant stage”).
(2) During the principal stage, OFCOM shall determine the total number of 26 GHz lower lots, the total number of 26 GHz upper lots, and the total number of 40 GHz lots which each bidder wins, but not the particular numbered 26 GHz lower lots, particular numbered 26 GHz upper lots or the particular numbered 40 GHz lots.
(3) Following completion of the principal stage, OFCOM shall determine the particular numbered 26 GHz lower lots, particular numbered 26 GHz upper lots, and the particular numbered 40 GHz lots that are to be assigned to the winning bidders in accordance with the procedure set out in the assignment stage.
(4) Following completion of the assignment stage, OFCOM shall grant licences authorising the use of the frequencies determined in accordance with the grant stage.
(1) During the principal stage, there shall be one or more principal stage rounds.
(2) A principal stage round shall begin and end at the times notified by OFCOM under regulations 19 and 25.
(3) The number of principal stage rounds shall be determined by OFCOM in accordance with regulation 58.
A principal stage bid is a bid for the inclusion in a licence of a specified number of lots (of a particular type) and a sum (which must be a whole number of thousands of pounds) which a bidder is willing to pay for a licence which includes those lots.
The total number of lots of each type which are available in the award process is—
(a) seven 26 GHz lower lots;
(b) five 26 GHz upper lots; and
(c) fifteen 40 GHz lots.
19 Notification of information to bidders before the first principal stage round
Before the first principal stage round, OFCOM shall notify each bidder of—
(a) the eligibility limit which applies to that bidder for that round; and
(b) the date on which, and the time period on that date in which bidding in the first principal stage round will take place.
In the first principal stage round—
(a) the price for each 26 GHz lower lot shall be two million pounds;
(b) the price for each 26 GHz upper lot shall be two million pounds; and
(c) the price for each 40 GHz lot shall be one million pounds.
21 First principal stage round bids on the auction system
(1) To bid in the first principal stage round a bidder must, on the auction system—
(a) specify the number of 26 GHz lower lots which it wishes to bid for at a price of two million pounds per lot;
(b) specify the number of 26 GHz upper lots which it wishes to bid for at a price of two million pounds per lot; and
(c) specify the number of 40 GHz lots which it wishes to bid for at a price of one million pounds per lot.
(2) A bidder may only specify one quantity of lots of each type.
(3) The number of lots of each type specified by the bidder must together meet the constraints of the eligibility rule.
(4) Subject to the constraint in paragraph (3), the number of lots of each type specified by the bidder may be any quantity from (and including) zero up to and including the total number of lots of that type which are available in the award process.
(5) Except where OFCOM have sent a notification to that bidder under regulation 124(1) or 128(1), if a bidder does not specify a quantity of lots it wishes to bid for in respect of any lot type within the time period for bidding, that bidder shall be deemed to have entered a decision to bid for zero lots of that lot type.
(6) Any bidder which, in the first principal stage round, specifies that it wishes to bid for (or is deemed to have bid for) zero 26 GHz lower lots, zero 26 GHz upper lot lots and zero 40 GHz lots, shall be excluded from the award process and shall not receive a refund of any sums which the bidder has paid as a deposit under these Regulations, which shall (where not already forfeited) be forfeited together with any interest which has accrued on the deposit.
22 Posted demand number after the end of the first round
(1) After the end of the first principal stage round, OFCOM shall determine the posted demand number for each lot type for each bidder.
(2) The posted demand number for each bidder for each lot type is the number of lots of that type which the bidder bid for in the first principal stage round.
24 Determination by OFCOM of excess demand after the end of the first round
(1) After the end of the first round, OFCOM shall determine the excess demand for each lot type.
(2) Excess demand is equal to—
(a) the sum of posted demand numbers for that lot type across all bidders; less
(b) the number of lots of that type which are available in the award process.
25 Notification of information to bidders before the second (and each subsequent) principal stage round
Before the start of the second (and each subsequent) principal stage round, OFCOM shall notify each bidder of—
(a) the eligibility limit for that bidder for the next round;
(b) the price range for each lot type for the next round;
(c) that bidder’s posted demand number in respect of each lot type which was determined after the most recent round (“notified posted demand number”);
(d) the posted price for each lot type which was determined after the most recent round;
(e) the excess demand for each lot type after the most recent round; and
(f) the date on which, and the time period on that date in which bidding in the next principal stage round will take place.
(1) The price range notified by OFCOM must specify in respect of each lot type—
(a) the lowest price (“the opening price”) in the range; and
(b) the highest price (“the clock price”) in the range.
(2) The opening price in a round shall be—
(a) a price per lot in whole thousands of pounds;
(b) the same for each lot within that lot type; and
(c) the same as the posted price for that lot type notified by OFCOM following the most recent round.
(3) The clock price in a round shall be—
(a) a price per lot in whole thousands of pounds;
(b) the same for each lot within that lot type; and
(c) higher than the opening price for that lot type.
27 Each bidder must make three sets of bids in the second (and each subsequent) principal stage round
(1) In the second principal stage round (and also in each subsequent principal stage round) each bidder must, using the auction system, make three sets of bids; one set of bids in respect of each lot type.
(2) The set of bids which must be made for a particular lot type is determined by the number of lots of that lot type (specified by a bidder on the auction system) in respect of which the bidder wishes to bid at the clock price (the “target number”).
(3) A bidder must not select target numbers for each of the three lot types which would together breach the eligibility rule.
(4) The only sets of bids (and the only bids within those sets) which may be made are those described in regulations 28 to 30.
(5) Subject to the constraint in paragraph (3), the target number of lots may be any quantity from (and including) zero up to and including the total number of lots of that type which are available in the award process.
(6) The target number for a particular lot type may be the same, higher or lower than the bidder’s notified posted demand number for that lot type.
(7) Each bid within a set must be a principal stage bid as described in regulation 17.
28 The set of bids to be submitted if a bidder wishes to maintain demand for lots at the clock price in the current round
(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for the same number of lots of a particular type as the bidder’s notified posted demand number for that lot type—
(a) it must specify a target number of lots on the auction system (within the time period for bidding) which is the same as the notified posted demand number for that bidder for that lot type; and
(b) the set of bids which must be submitted by that bidder comprises—
(i) a bid for the target number of lots at a price per lot which is the clock price; and also
(ii) a bid for the target number of lots at every price level that exists from (and including) the opening price up to but not including the clock price.
(2) A set of bids described in paragraph (1)(b) is referred to as a “set of bids to maintain demand”.
29 The set of bids to be submitted if a bidder wishes to increase demand for lots at the clock price in the current round
(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for more lots of a particular type than the bidder’s notified posted demand number for that lot type—
(a) that bidder must specify a target number of lots on the auction system (within the time period for bidding) for that lot type which is higher than the bidder’s notified posted demand number for that lot type; and
(b) the set of bids which must be submitted by that bidder comprises—
(i) a bid for the target number of lots at every price level that exists from and including the opening price up to and including the clock price;
(ii) a bid for the quantity of lots equal to the bidder’s notified posted demand number, at every price level that exists from (and including) the opening price up to (and including) the clock price; and
(iii) a bid for each number of lots which is a number of lots (if any) that exists between the notified posted demand number for that bidder for that lot type and the target number of lots, at every price level that exists from (and including) the opening price up to (and including) the clock price.
(2) A bidder to which paragraph (1) applies must also nominate a price on the auction system (for the purposes of bid ranking sets of bids) which is—
(a) the opening price;
(b) the clock price; or
(c) any price level falling within the range of prices between the opening price and the clock price.
(3) A set of bids described in paragraph (1)(b) is referred to as a “set of bids to increase demand”.
30 The set of bids to be submitted if a bidder wishes to decrease demand for lots at the clock price in the current round
(1) In any principal stage round after the first round, if a bidder wishes to bid at the clock price for fewer lots of a particular type than the bidder’s notified posted demand number for that lot type, that bidder must—
(a) specify a target number of lots on the auction system (within the time period for bidding) for that lot type which is lower than the bidder’s notified posted demand number for that lot type;
(b) nominate a price on the auction system; and
(c) submit the required set of bids.
(2) The nominated price may be any price in whole thousands of pounds which is—
(a) the opening price;
(b) the clock price; or
(c) any price level falling within the range of prices between the opening price and the clock price.
(3) If a bidder specifies a target number of lots which is lower than that bidder’s notified posted demand number for that lot type by two or more lots, that bidder must also indicate on the auction system whether it wishes to submit either—
(a) a simple set of bids to decrease demand; or
(b) an all or nothing set of bids to decrease demand.
(4) If a bidder specifies a target number of lots which is lower than that bidder’s notified posted demand number for that lot type by a single lot, that bidder must submit a simple set of bids to decrease demand.
(5) The set of bids which must be submitted if the bidder submits a simple set of bids to decrease demand are those described in paragraphs (6), (7) and (8).
(6) If the nominated price is the clock price, the set of bids are—
(a) a bid for the target number of lots at the clock price;
(b) a bid at every price level that exists from (and including) the opening price up to (and including) the clock price for all of the lots comprised within the bidder’s notified posted demand number; and
(c) a bid for each quantity of lots (if any) which is higher than the target number of lots, and lower than the bidder’s notified posted demand number, at the nominated price.
(7) If the nominated price is the opening price, the set of bids are—
(a) a bid for the target number of lots at the opening price;
(b) a bid for the target number of lots at every price level that exists from the opening price up to (and including) the clock price; and
(c) a bid for all of the lots comprised within the bidder’s notified posted demand number at the opening price; and
(d) a bid for each quantity of lots (if any) which is higher than the target number of lots and lower than the notified posted demand number for that bidder, at the opening price;
(8) If the nominated price is higher than the opening price but lower than the clock price, the set of bids are—
(a) a bid for the target number of lots at the nominated price;
(b) a bid for the target number of lots at every price level which exists which is higher than the nominated price and up to and including the clock price; and
(c) a bid for a quantity of lots equal to that bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the nominated price; and
(d) a bid for each quantity of lots (if any) which is higher than the target number of lots and lower than that bidder’s notified posted demand number, at the nominated price.
(9) The set of bids which must be submitted if the bidder submits an all or nothing set of bids to decrease demand are those described in paragraphs (10), (11) and (12).
(10) If the nominated price is the clock price, the set of bids are—
(a) a bid for the target number of lots at the clock price; and
(b) a bid for all of the lots comprised within the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.
(11) If the nominated price is the opening price, the set of bids are—
(a) a bid for the target number of lots at the opening price;
(b) a bid for the target number of lots at every price level which exists which is higher than the opening price up to (and including) the clock price; and
(c) a bid for a quantity of lots equal to the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.
(12) If the nominated price is higher than the opening price but lower than the clock price, the set of bids are—
(a) a bid for the target number of lots at the nominated price;
(b) a bid for the target number of lots at every price level which exists which is higher than the nominated price and up to (and including) the clock price; and
(c) a bid for a quantity of lots equal to the bidder’s notified posted demand number at every price level that exists from (and including) the opening price up to (and including) the clock price.
(13) A “set of bids to decrease demand” means a simple set of bids to decrease demand or an all or nothing set of bids to decrease demand.
31 Failure to specify a target number of lots on the auction system within the time period for bidding in a round
(1) This paragraph applies to a bidder if, in relation to any lot type, that bidder—
(a) has not specified on the auction system within the time period for bidding the target number of lots which it wishes to bid for;
(b) that bidder had a notified posted demand number of zero for that lot type following the most recent round; and if
(c) OFCOM have not sent a notification to that bidder under regulation 56(1), 124(1) and 128(3).
(2) A bidder to which paragraph (1) applies shall be deemed to have submitted a set of bids to maintain demand for that lot type.
(3) This paragraph applies to a bidder if, in relation to any lot type, that bidder—
(a) has not specified on the auction system within the time period for bidding the target number of lots which it wishes to bid for;
(b) that bidder had a notified posted demand number of one or more lots of that type after the most recent round; and if
(c) OFCOM have not sent a notification to that bidder under regulation 56(1), 124(1) and 128(3).
(4) A bidder to which paragraph (3) applies—
(a) shall be deemed to have selected a target number of zero lots and nominated the opening price; and
(b) that bidder shall be deemed to have submitted a simple set of bids to decrease demand for that lot type.
32 Creating a ranking list of sets of bids and carrying out a selection process with regard to sets of bids on the list in order to determine each bidder’s posted demand number
(1) In order to determine each bidder’s posted demand number after the second (and each subsequent) principal stage round OFCOM shall follow the process in this regulation.
(2) OFCOM shall from the sets of bids made by all bidders—
(a) first, identify all sets of bids to maintain demand;
(b) second, identify all sets of bids to decrease demand;
(c) third, identify all sets of bids to increase demand;
(3) Having identified sets of bids OFCOM shall—
(a) calculate the price point for all sets of bids to decrease demand in accordance with regulation 33; and
(b) calculate the price point for all sets of bids to increase demand in accordance with regulation 34.
(4) OFCOM shall (having regard to the price points) create a ranking list of all of the sets of bids to increase demand and all of the sets of bids to decrease demand in accordance with regulation 35;
(5) OFCOM shall consider sets of bids on the ranking list in order to determine whether or not they are to be accorded removed status and whether or not they are to be accorded reduced status and then repeat the process as required by regulations 36, 37 and 38.
(6) After the process is complete OFCOM shall determine the posted demand number for each bidder for each lot type in accordance with regulations 45, 46 and 47.
33 Calculating the price point for all sets of bids where a bidder decreased demand
(1) In relation to each set of bids to decrease demand OFCOM shall calculate the price point in accordance with paragraph (2).
(2) For each such set of bids made by a bidder, the price point in relation to that set is a number calculated as—
(a) the difference in whole thousands of pounds between the nominated price for that set and the opening price for that lot type; divided by
(b) the difference in whole thousands of pounds between the clock price for that lot type and the opening price for that lot type.
34 Calculating the price point for all sets of bids where a bidder increased demand
(1) In relation to each set of bids to increase demand OFCOM shall calculate the price point in accordance with paragraph (2).
(2) For each such set of bids made by a bidder, the price point in relation to that set is a number calculated as—
(a) the difference in whole thousands of pounds between the nominated price for that set and the opening price for that lot type; divided by
(b) the difference in whole thousands of pounds between the clock price for that lot type and the opening price for that lot type.
35 Creating a ranking list which contains sets of bids to decrease demand and sets of bids to increase demand
(1) OFCOM shall create a list which ranks the sets of bids to decrease demand and the sets of bids to increase demand (the “ranking list”).
(2) The ranking list shall include sets of bids, irrespective of lot type, on the same list.
(3) The ranking list shall include sets of bids to decrease demand and sets of bids to increase demand, on the same list.
(4) Each of the sets of bids shall be listed in ascending order of price point (irrespective of lot type and irrespective of whether it is a set of bids to decrease demand or a set of bids to increase demand), with sets of bids with lower price points being placed higher in the list than sets of bids with higher price points.
(5) Where two or more sets of bids have the same price point, OFCOM shall use a method of random selection to determine the relative ranking of those sets of bids on the list.
(1) OFCOM shall consider each set of bids on the ranking list in turn starting from the top of the list and working towards the bottom of the list, in order to determine if a set of bids would meet the criteria to be removed from the ranking list.
(2) If a set of bids is to be removed from the ranking list OFCOM shall determine that bidder’s posted demand number for that lot type by reference to the bidder’s target number of lots within that set of bids.
(3) If the set of bids is not removed from the ranking list, OFCOM shall determine if that set of bids meets the criteria to be accorded reduced status.
(4) If the set of bids is not to be removed nor accorded reduced status, OFCOM shall consider if the next set of bids immediately lower on the list would meet the criteria to be removed from the ranking list and, if not, then consider if that set of bids is to be accorded reduced status.
On each occasion when a set of bids meets the criteria to be removed from the ranking list or accorded reduced status OFCOM shall—
(a) remake the list without including a set of bids which is to be removed but including a set of bids which has been accorded reduced status; and
(b) consider afresh each set of bids (if any) on the list starting from the top of the new list and working towards the bottom of the list (in light of currently selected demand) until a set of bids is removed or accorded reduced status, or until completion of the selection process in accordance with regulation 38, whichever happens first.
OFCOM shall continue considering sets of bids in turn until—
(a) OFCOM has considered each set of bids that was submitted in the round at least once; and
(b) the last set of bids (if any) on the list (or any list which has been remade in accordance with regulation 37) has been considered and not removed or accorded reduced status.
39 Currently selected demand for lots of a particular type
During the selection process the currently selected demand for lots of a particular type for any particular bidder shall—
(a) at the beginning of the selection process be set as equal to the notified posted demand number for that bidder in respect of that lot type; and
(b) be changed in respect of that bidder for that particular lot type whenever a set of bids of that lot type from that bidder is removed or accorded reduced status in accordance with regulations 41, 43 or 44.