Digital dividend

The digital dividend describes the radiofrequency spectrum that will become available when the switch off of analog television signals is completed by 31 December 2013.

On 24 June 2010, the Minister for Broadband, Communications and the Digital Economy announced the Australian Government's decision to release 126 MHz of contiguous spectrum in the frequency range 694 to 820 MHz inclusive as a digital dividend.

•  Media release: Size and Location of the Digital Dividend

The government's decision on the size and location of the digital dividend was made following extensive public consultation through the release of a green paper on the digital dividend in early 2010. The paper and copies of the submissions received are available on the digital dividend green paper page.

To release this highly-valued spectrum, completion of three interlinking processes is necessary.

1. SWITCHOVER—This step refers to the process of converting free-to-air television services from analog to digital signals. Once this conversion is complete, the analog signals will be switched off and the parts of the spectrum formerly used for analog transmissions will become available, permitting refarming of this spectrum for alternative uses.

2. RESTACK—This step involves clearing digital broadcasting services from the digital dividend frequency range and reorganising them more efficiently in the remaining broadcasting spectrum below 694MHz. This process is known as 'restacking' and it will enable the spectrum to be made available to new users. The Broadcasting Legislation Amendment (Digital Dividend and Other Measures) Act 2011 sets a deadline of 31 December 2014 for completion of the restack.

3. REALLOCATION and AUCTION—This step refers to the packaging-up and auctioning of the digital dividend spectrum for new services.  

The Australian Communications and Media Authority (ACMA) is responsible for the technical planning and engineering of the restack, reallocation and auction process.

Auction

On 27 May 2011 the ACMA announced its decision to sell spectrum in the digital dividend band and the 2.5 GHz band together in a single auction. On 20 September 2011, the ACMA announced that it will use the Combinational Clock Auction (CCA) format to auction the spectrum.

•  ACMA moves ahead with auction of spectrum in the 700 MHz (digital dividend) and 2.5 GHz bands
•  ACMA announces choice of auction system for the sale of digital dividend spectrum

In the lead-up to the auction, a number of statutory processes must be satisfied.

Re-allocation declarations

Following a recommendation from the ACMA in August 2011, on 1 November 2011 , the minister made instruments declaring that 2x45 MHz of spectrum in the digital dividend (700 MHz) band and 2x70 MHz in the 2.5 GHz band will be reallocated by issuing spectrum licences.the digital dividend and 2.5 GHz spectrum to be re-allocated by issuing spectrum licences

•  Radiocommunications (Spectrum Re-allocation) Declaration No. 1 of 2011
• Radiocommunications (Spectrum Re-allocation) Declaration No. 2 of 2011

Competition limits directions

Under the Radiocommunications Act 1992, the minister may direct the ACMA to develop procedures to impose competition limits on the sale of spectrum. On 2 February 2012, the minister directed the ACMA to determine procedures to impose competition limits on the amount of spectrum participants are permitted to acquire in the auction. The directions specify limits of 2x20 MHz for the 700 MHz band and 2x40 MHz for the 2.5 GHz band respectively.

•  Radiocommunications (Spectrum Licence Limits) Direction No. 1 of 2012
•  Radiocommunications (Spectrum Licence Limits) Direction No. 2 of 2012

The minister's decision was informed by advice from the Australian Competition and Consumer Commission (ACCC).

•  ACCC advice to the minister regarding digital dividend and 2.5 GHz spectrum auction competition limits (PDF 70 KB)

A Regulation Impact Statement (RIS), ‘Competition limits on the sale of digital dividend (700 MHz) and 2.5 GHz spectrum’, was prepared to assist the minister’s decision making.

The RIS is available from the Office of Best Practice Regulation website.

•  Competition limits on the sale of digital dividend (700 MHz) and 2.5 GHz spectrum (OBPR website)

Further information on the digital dividend auction process is available from the ACMA's 'Engage' website.

•  www.engage.acma.gov.au/digitaldividend.

Reallocation

In October 2010, the ACMA released a discussion paper, 'Spectrum reallocation in the 700 MHz digital dividend band', which set out planning and allocation issues and options for the digital dividend spectrum. The discussion paper and the submissions received in response to it are on the ACMA website.

•  Consultation on the configuration and allocation of digital dividend spectrum

Separately in January 2010, the ACMA undertook consultation on a range of options for future licensing arrangements, planning and pricing for the 2.5 GHz band through the discussion paper 'Review of the 2.5 GHz band and long term arrangements for ENG'. This paper generated 42 submissions during the consultation period. The ACMA released a response to the submissions on 21 October 2010.

•  Review of the 2.5 GHz band and long term arrangements for ENG 

Following consideration of submissions received through these processes, on 27 May 2011 the ACMA released for consultation draft recommendations to the minister that spectrum reallocation declarations be made for the 700 MHz and 2.5 GHz bands. The spectrum reallocation declarations officially declare spectrum in the 700 MHz and 2.5 GHz bands subject to reallocation, setting out the parts of the spectrum to be reallocated, the dates for the reallocation period and the reallocation deadline, and the type of licensing to apply in the bands.

•  ACMA seeks comment from potentially-affected apparatus licensees on Draft Reallocation Recommendations in the 700 MHz (694—820 MHz) and 2.5 GHz (2500—2570 and 2620—2690 MHz) bands

In August 2011, the ACMA made its final recommendations to the minister that parts of the 700 MHz and 2.5 GHz bands should be reallocated nationally as spectrum licences excluding part of the Mid West Radio Quiet Zone. The ACMA recommended that two 45 MHz blocks of spectrum should be reallocated in the 700 MHz band (frequency bands 703–748 and 758–803 MHz). The ACMA also recommended that two 70 MHz blocks of spectrum should be reallocated in the 2.5 GHz band (frequency bands 2500–2570 and 2620–2690 MHz).

Following consideration of the ACMA recommendations, the minister formally initiated the digital dividend reallocation and auction process by making spectrum reallocation declarations for the bands on 1 November 2011.

Restacking

In February 2011, the ACMA released 'Clearing the Digital Dividend', a discussion paper on the process of clearing digital TV services from the digital dividend spectrum. It set out the proposed objectives and planning principles that govern the preparation of channel plans for the restack. Following consideration of submissions received, on 26 May 2011 the ACMA published a further decision paper 'Clearing the digital dividend—Decisions on planning principles for restacking digital television channels'. Both these discussion papers and the submissions are on the following ACMA page.

•  Clearing the Digital Dividend—Planning objectives and principles for restacking digital television channels

The Department of Broadband, Communications and the Digital Economy and the ACMA continue to work closely with key stakeholders, including wireless audio device users and broadcasters, to plan and implement these clearance processes.

Further information on the restack process is available from the ACMA website.

•  Restack of digital television services

Document ID: 120296 | Last modified: 24 February 2012, 4:52pm