This document gives notice of a proposed modification to the cap on basic supplementary bids as set out in regulation 19 of the draft 2.6GHz auction regulations (relating to the award of 2500-2690 MHz and 2010-2025 MHz), as published for consultation on 4 April 2008. It provides formal notice to stakeholders of Ofcom’s proposal to make regulations which will incorporate the proposed modification set out in this document. The general effect of the proposed modification is set out in section 2.
In summary, we are proposing to replace the existing absolute cap on basic supplementary bids with a relative cap. This should have the effect of encouraging bidders to reduce demand in the p rima ry bid rounds of the auction in line with their marginal valuation of the spectrum. We explain this more fully in Section 2. The change to the text of the relevant regulation is set out in annex 1, and some worked examples of the effect of the proposed change are set out at annexes 2, 3 and 4.