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Comreg announce results of Multi-band Spectrum Award

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  • 15-11-2012 11:00am
    #1
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭


    A report on Morning Ireland this morning said that Comreg will announce the winning bidders for the 800, 900 and 1800 MHz spectrum at 0930 today
    MORNING BRIEFS - The switch off becomes the switch on later this morning as the Communications Regulator announces the results of the Multi-Band Spectrum Auction for the 800, 900 and 1800 MHz bands. This refers to the radio bandwidth which was used by the original generation of mobile phones and the bandwidth which was until very recently used to carry the analogue TV signal through the airwaves. The bandwidths will be used by the successful bidders to provide a range of new telecoms services. These will most likely include high-speed, high quality mobile internet.

    http://www.rte.ie/news/2012/1115/morning-business-news-november-15-business.html

    http://www.irishexaminer.com/breakingnews/ireland/sale-of-radio-spectrum-to-provide-govt-windfall-574274.html


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    #2
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    Comreg Press Release and results
    http://www.comreg.ie/_fileupload/publications/PR15112012.pdf
    http://www.comreg.ie/_fileupload/publications/ComReg12123.pdf

    http://www.rte.ie/news/2012/1115/four-firms-to-pay-854m-for-spectrum-rights-business.html?3435531,3435531,flash,247#article
    http://www.rte.ie/news/av/2012/1115/media-3435760.html#
    http://www.rte.ie/news/av/2012/1115/media-3435790.html#


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    #3
    watty
    Registered Users Posts: 32,417 ✭✭✭✭watty


    More Incompetence from Comreg.


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    #4
    Tony
    Registered Users Posts: 11,325 ✭✭✭✭Tony


    Can you elaborate on that Watty ? In what way is it incompetent ?

    watty wrote: »
    More Incompetence from Comreg.

    Desktop PC Boards discount code on https://www.satellite.ie/ is boards.ie



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    #5
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    ~€50million a year until 2030, I work it out to be, with ~450m been seen up front 2012/2013.

    It will be interesting to see how this pans out.


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    #6
    swoofer
    Registered Users Posts: 5,416 ✭✭✭swoofer


    Talking about dressing the turkey, headline is €854m actual is €487 = 50% approx now. 17 years to get the rest, one question why? we are skint. I bet no other country does that type of deal. And they will no doubt offset start up costs against tax so in effect its free.

    And the real sickener = cover 70% of... yes the population, so countrywide forget it. And they get 3 years to implement= why?


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    #7
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    GBCULLEN wrote: »
    I bet no other country does that type of deal.

    Other countries have, I don't remember the specifics but the information is contained somwhere in the consultation documents. The annual spectrum usage fees are also indexed linked.


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    #8
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    They did much better than I thought they would.


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    #9
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    The Cush wrote: »
    Other countries have, I don't remember the specifics but the information is contained somwhere in the consultation documents. The annual spectrum usage fees are also indexed linked.

    Still the whole Digital Dividend isn't as big as originally expected IMO????

    I assume the following but am happy to be wrong on all counts: -

    1. Mobile networks would have spent similar amounts maintaining 3G networks over the next 18 years, not benefit on jobs front.
    2. Call center staffing arrangements will not change, they could still be moved to other countries around the world.
    3. The fees don't seem dissimilar to the original 3G licence, the up front payment is the only extra amount. When are 3G licences to be dropped? Again I assume that had 4G not been possible that new 3G licences would have had a high renewal fee and then smaller amounts later on.
    4. 4G really just replaces 3G, and hopefully will provide a better service to the customer, but the customer will pay extra for 4G and it is unlikely that 3G will see significant price reductions.
    5. The main selling point will be new phones and will it even give competition to fixed line providers????


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    #10
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    Dáil question from just before Christmas asking if the mobile auction upfront spectrum fees had been paid
    Wednesday, 19 December 2012

    136. Deputy Michael Moynihan
    asked the Minister for Communications, Energy and Natural Resources if any of the moneys raised by the recent multi-band spectrum auction have been paid into the Exchequer; and if he will make a statement on the matter. [57352/12]

    Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act, 2002 as amended.

    ComReg recently announced the winning bidders of its Multi-band Spectrum Auction for the 800, 900 and 1800 MHz bands.

    I can confirm that ComReg transferred the amount of €450M, in respect of upfront fees accruing from its Multi-band Spectrum Auction, to the Exchequer on Friday 14th December 2012. The remainder of the fees will be paid on an annual basis over the duration of the terms of the licences.

    http://oireachtasdebates.oireachtas.ie/debates%20authoring/debateswebpack.nsf/takes/dail2012121900074?opendocument#Telecommunications Services
    Winning Bidders will pay approximately €854.64 million for these spectrum rights, comprising of €481.7 million in Upfront Fees (adjusted as necessary by transitional arrangements), along with annual Spectrum Usage Fees totalling €372.95 million which will be adjusted for inflation and paid in instalments until July 2030.

    ...

    Final Upfront Fees is contingent on: any Licence fee refunds or adjustments in respect of delayed commencement arising from Transition; Relocation Rebates; Early Liberalisation Rebates; and/or any Advanced Commencement fees due. These are detailed in the Information Memorandum (ComReg document 12/52 available at www.comreg.ie). The amounts will be finalised over the course of the transition process.

    http://www.comreg.ie/publications/media_release_-_comreg_announces_results_of_its_multi-band_spectrum_auction.583.104237.p.html


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    #11
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    Dáil questions on the fees paid following the multi-band spectrum auction late last year
    Tuesday, 19 February 2013

    469. Deputy Michael Moynihan
    asked the Minister for Communications, Energy and Natural Resources the amount of moneys raised by last November's multi-band spectrum auction that have been paid into the Exchequer; and if he will make a statement on the matter. [8512/13]

    Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act, 2002 as amended. ComReg recently announced the winning bidders of its Multi-band Spectrum Auction for the 800, 900 and 1800 MHz bands. I can confirm that ComReg transferred the amount of €450M, in respect of upfront fees accruing from its Multi-band Spectrum Auction, to the Exchequer on Friday, 14 December 2012. The remainder of the fees will be paid on an annual basis over the duration of the terms of the licences.

    http://oireachtasdebates.oireachtas.ie/debates%20authoring/debateswebpack.nsf/takes/dail2013021900086?opendocument#WRS01250
    Tuesday, 26 February 2013

    114. Deputy Thomas P. Broughan
    asked the Minister for Communications, Energy and Natural Resources if he will report on the recent 4G spectrum sale which netted €855m for the Exchequer and if the process has been fully concluded; if any decision have been made for the ring-fencing of the money generated by the sale for broadband or other communications and energy projects; and if he will make a statement on the matter. [9919/13]

    Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act, 2002 as amended.

    ComReg recently announced the winning bidders of its Multi-band Spectrum Auction for the 800, 900 and 1800 MHz bands.

    The winning bidders will pay €854.64 million for these spectrum rights, comprising firstly of Upfront Fees amounting to €481.7 million (adjusted as necessary by transitional arrangements) and secondly, Annual Spectrum Usage Fees in the amount of €372.95 million which will be adjusted for inflation and paid in instalments until July 2030. The duration of the licences is to 2030.

    I can confirm that ComReg transferred the amount of €450M, which is slightly over 50% of the fees, to the Exchequer on Friday 14th December 2012. The remainder of the fees will be paid on an annual basis over the duration of the terms of the licences.

    The Deputy may wish to note that fees received by ComReg for spectrum access are transferred directly to the Exchequer in accordance with provisions of Section 30 of the Communications Regulation Act 2002 as amended and do not come under the control of my Department at any time.

    Responsibility for the allocation of Exchequer receipts, including the spectrum receipts, falls within the remit of my colleague the Minister for Finance and is not a matter in which I have any statutory role.

    http://oireachtasdebates.oireachtas.ie/debates%20authoring/debateswebpack.nsf/takes/dail2013022600054?opendocument#WRC03100


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    #12
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    How much did RTÉ spend to closed down TV, I mean, switch off analogue?

    And the role out dates have been push back by the providers, no surprises there.


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    #13
    watty
    Registered Users Posts: 32,417 ✭✭✭✭watty


    But the Government didn't give them any money for DSO/ASO


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    #14
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    watty wrote: »
    But the Government didn't give them any money for DSO/ASO

    Indeed. My point is that RTÉ spent nearly the same amount to switch off Analogue and run DTT, while the government collected licence fees from the operators just to have it go into a defunct Exchequer. IMO it is a case of robbing Peter to pay Paul.


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    #15
    Sam Russell
    Moderators, Science, Health & Environment Moderators Posts: 19,409 Mod ✭✭✭✭Sam Russell


    Elmo wrote: »
    Indeed. My point is that RTÉ spent nearly the same amount to switch off Analogue and run DTT, while the government collected licence fees from the operators just to have it go into a defunct Exchequer. IMO it is a case of robbing Peter to pay Paul Enda, Eamonn, Pat, Brendan, Michael, etc.

    Corrected that for you. Hope you don't mind too much.:)


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    #16
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    Sam Russell wrote: »
    Corrected that for you. Hope you don't mind too much.:)

    IMO it is a case of robbing Peter The Public to pay Paul Enda, Eamonn, Pat, Brendan, Michael The Banks, ECB, IMF (wouldn't mind but it's not even the good IMF :pac: )

    https://www.youtube.com/watch?v=mI9KhPJ-utE


    If I was more creative I would montage RTÉ Execs getting a loan, Pat Rabbitte's crocdile tears on Prime Time, Enda shaking Merkels hand, Chopra heading into the Department of Finance, with special guest credit to Micheal O'Keeffe.


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    #17
    Hotblack Desiato
    Registered Users Posts: 34,039 ✭✭✭✭Hotblack Desiato


    Elmo wrote: »
    Indeed. My point is that RTÉ spent nearly the same amount to switch off Analogue and run DTT, while the government collected licence fees from the operators just to have it go into a defunct Exchequer. IMO it is a case of robbing Peter to pay Paul.

    Setting up Saorview cost ~€70m IIRC, which RTENL borrowed. That's a lot less than €450m (upfront fee) and there's an annual 4G fee coming in as well. There are fewer DTT transmitters than there were for analogue and they run at much lower power (a whole mux uses less than a single analogue channel did.)

    Life ain't always empty.



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    #18
    Elmo
    Registered Users Posts: 23,641 ✭✭✭✭Elmo


    ninja900 wrote: »
    Setting up Saorview cost ~€70m IIRC, which RTENL borrowed. That's a lot less than €450m (upfront fee) and there's an annual 4G fee coming in as well. There are fewer DTT transmitters than there were for analogue and they run at much lower power (a whole mux uses less than a single analogue channel did.)

    No I have to look at it but I heard a larger figure I think the €70m was a figure towards the end. I will find out.


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    #19
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    Analogue tv had to be turned off as it was EU regulation


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    #20
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    Elmo wrote: »
    No I have to look at it but I heard a larger figure I think the €70m was a figure towards the end. I will find out.

    Originally the figure for the 4 mux DTT service was in the region of €100-120 million (up to €150 million for 6 muxes in 2005) but when the commercial DTT process came to an end in mid 2010 the cost for the revised 2 mux DTT service reduced to €70 million with €38.25 million of that amount borrowed from Barclays Bank, to be repaid over 5 years.


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    #21
    The Cush
    Registered Users Posts: 15,500 ✭✭✭✭The Cush


    hfallada wrote: »
    Analogue tv had to be turned off as it was EU regulation

    It was more of an EU Commission recommendation back in 2009 that analogue broadcasting be switched off by Jan 1st 2012. We missed that date by almost 10 months.

    EU members Greece, Bulgaria, Hungary and Poland plan to ASO this year and Romania in 2015.


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