FAQ about the auction

Inquiries about the auction in the 2.6 GHz band may be submitted to 2.6ghz@pts.se. The questions are grouped under several headings below.

  
Please note that PTS intends to publish all received questions and answers to them on the PTS website, excluding the identity of the party making the inquiry. However, to preserve anonymity, PTS suggests that enterprises who are interested in participating in the auction submit their questions by way of an attorney. Sensitive or confidential information should not be included in questions submitted to PTS.

Latest questions

4.3.2008 Is it possible to withdraw an application to participate in the auction? Will PTS in such cases return the bank guarantee?
4.3.2008 Can the information in the application on which companies are in the same group of companies as the applicant be kept confidential?
6.2.2008 What does it mean that the bank guarantee must at least correspond to the number of points the applicant intends to place a bid for in the first bidding round?
6.2.2008 How do the bidders know with which amount they can place and raise their bids?
6.2.2008 If any changes occur after the last date for application in the relationship between the legal entities which are part of the same group of companies as the applicant, should such changes be communicated to PTS?
28.1.2008 Which version takes precedence if there are discrepancies between the Swedish and English versions of the documents (the Regulations, the Open Invitation and other documents)?
28.1.2008 Can the license be sublicensed? Meaning that if one entity owns the spectrum license, can that entity sub-license the spectrum to a 3rd party that would build the infrastructure and provide the service.
28.1.2008 Are there deployment obligations imposed to the spectrum licensees?
28.1.2008 Are the spectrum licenses transferable to 3rd parties after the auction?
25.1.2008 Can the bank be a branch or a subsidiary located in an EEA country but belonging to, e.g., a US based bank?
25.1.2008 Is there a requirement that applicants must be established in Sweden or the EU?
25.1.2008 Must the institution issuing the bank guarantee be a bank?
17.1.2008
Which language will the interface of the auction system be in?
17.1.2008 Will the names of participants in the auction be published?
17.1.2008 On what basis have the technical license conditions been developed?
17.1.2008 What is the difference between activity and eligibility?
17.1.2008 What are points?
17.1.2008 Are higher bids allowed than the amount of the bank guarantee?
17.1.2008 How much should the bank guarantee amount to?
17.1.2008 What should the bank guarantee look like?
17.1.2008 What is the purpose of the bank guarantee?
17.1.2008 Why are there minimum bids and how have they been set?
17.1.2008
What happens if two associated companies apply to participate in the auction?
17.1.2008
What is the cost for participation in the auction?
17.1.2008 What is required to participate in the auction?
17.1.2008 Who may apply to participate in the auction?
19.12.2007 Information on the prohibition of collusion


Frequency blocks and licence conditions

28.1.2008
Can the license be sublicensed? Meaning that if one entity owns the spectrum license, can that entity sub-license the spectrum to a 3rd party that would build the infrastructure and provide the service.

PTS' current interpretation of the legislation in place is that subletting of spectrum licenses as such is not allowed. However, it is perfectly possible for a license holder to subcontract the actual infrastructure rollout, network operation, and provision of end-user services to one or several third parties. There has recently been set up a government committee for a review of spectrum-related legislation in Sweden. Within its remit are proposals for amended legislation so as to explicitly allow for the subletting of spectrum licenses.

28.1.2008
Are there deployment obligations imposed to the spectrum licensees?

There are no deployment and roll-out obligations in the license conditions.

28.1.2008
Are the spectrum licenses transferable to 3rd parties after the auction?

The spectrum licenses are transferable in accordance with Chapter 3, Section 23, of the Electronic Communications Act. A transfer must be approved by PTS.

17.1.2008
On what basis have the technical license conditions been developed?
PTS has used the Draft CEPT Report 19 as a basis for the formulation of the licence conditions.

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Application

25.1.2008
Is there a requirement that applicants must be established in Sweden or the EU?

There are no restrictions on the nationality of applicants. The requirements for the application are stated in the Regulations and the open invitation.

17.1.2008
Who may apply to participate in the auction?
Those who submit an application and a bank guarantee in due time in the proper manner.

17.1.2008
What is required to participate in the auction?
Applicants must submit an application and a bank guarantee that fulfils all requirements of the Regulations and the Open invitation. The last date for application is 10 March 2008. The table indicates the items to be submitted to PTS.

    

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Bank guarantees

4.3.2008
Is it possible to withdraw an application to participate in the auction? Will PTS in such cases return the bank guarantee?
An applicant may withdraw its application to participate in the auction. A request for withdrawal must be sent to PTS in writing and must be signed by an authorised signatory. If an application is withdrawn, PTS will as soon as possible return the bank guarantee.

6.2.2008
What does it mean that the bank guarantee must at least correspond to the number of points the applicant intends to place a bid for in the first bidding round?

Each bidder is in the first bidding round assigned an eligibility as a number of points, which is calculated as the amount of the bidder's bank guarantee divided by SEK 9 400 000, rounded down. A bidder may never have more than 14 points of eligibility, even if that bidder's bank guarantee corresponds to a higher number of points than 14.

25.1.2008
Can the bank be a branch or a subsidiary located in an EEA country but belonging to, e.g., a US based bank?

Yes, if the bank's branch or subsidiary is established in an EEA country and is registered by and under the regulatory supervision of that country's regulatory authority for banks.

25.1.2008
Must the institution issuing the bank guarantee be a bank?

Yes, it must be a bank. The bank guarantee must be issued by a bank in a country that is a member of the EEA (European Economic Area) Agreement.

17.1.2008
What is the purpose of the bank guarantee?
The purpose of the bank guarantee is to serve as security for the claim for the auction amount on the winning bidders. Bidders who are not assigned a license do not need to pay anything.

17.1.2008
What should the bank guarantee look like?

The bank guarantee must be issued in Swedish kronor (SEK) and must have the content indicated in Appendix 3 to the Open invitation. The bank guarantee must be issued by a bank in a country that is a member of the EEA (European Economic Area) Agreement.

17.1.2008
How much should the bank guarantee amount to?
The bank guarantee must at least correspond to 9 400 000 kronor per point for which the applicant wants to have an opportunity to bid in the auction. For example, to be able to bid for one FDD block a bank guarantee of 9 400 000 SEK must be submitted. To be able to bid for the TDD block, a bank guarantee of 47 000 000 SEK must be submitted.

17.1.2008
Are higher bids allowed than the amount of the bank guarantee?

The amount of the bank guarantee does not restrict the amount of the bids the bidder may submit in the auction.

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Associated companies 

4.3.2008
Can the information in the application on which companies are in the same group of companies as the applicant be kept confidential? 
The applicant may state in its application that it wants the list of group companies to be kept confidential. PTS will treat such a request in accordance with the Swedish Official Secrets Acts. However, any PTS decision on secrecy is subject to appeal to the Stockholm Administrative Court of Appeal. Consequently, PTS cannot give any guarantees of confidentiality.

6.2.2008
If any changes occur after the last date for application in the relationship between the legal entities which are part of the same group of companies as the applicant, should such changes be communicated to PTS?
The applicants must declare in their applications which legal entities are a part of the same group of companies as the applicant at the time of the application. There is no requirement that applicants, without an express demand from PTS, communicate changes in group composition that have occured after the application.

However, the prohibition of participation in the auction by two or more associated companies (Section 12 of the Regulations) is valid during the whole auction. If a company does not comply with that provision, PTS may bar that enterprise from further participation in the auction.

17.1.2008
What happens if two associated companies apply to participate in the auction?
If two or more companies which are associated companies apply to participate in the auction, PTS will request that these companies indicate which applicant is to participate in the auction. If this request is not complied with, none of the associated companies may participate in the auction.

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Collusion 

19.12.2007
Information on the prohibition of collusion

Bidders may not collude before or during this auction. In particular, bidders may not coordinate their bidding with other bidders. Discussions about the auction between two bidders may be interpreted as collusion. The provision on prohibition of collusion applies to coordination between parties who intend to become bidders and between parties who have been accepted as bidders. The provision however only covers collusion taking place after a party’s decision to apply to become a bidder in the auction. The provision does not cover discussions with a view to decide whether or not to participate in the auction. The provision on prohibition of collusion consequently allows an agreement to the effect that a certain party shall represent other parties and those other parties shall not apply for bidder status in the auction.

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Auction procedure 

6.2.2008
How do the bidders know with which amount they can place and raise their bids?
The minimum bids for each frequency block are stated in the Open Invitation. In each bidding round, the auctioneer (PTS) decides a bidding level for each frequency block at which the bidder may place or raise its bid (on the condition that the bidder has sufficient eligibility). In certain cases, bidding levels for a frequency block may also vary between different bidders. The bidding levels will be announced at the start of each bidding round via the electronic auction system.

17.1.2008
Why are there minimum bids and how have they been set?
The purpose of minimum bids is to shorten the auction process. The minimum bids have been set so that they are highly likely to be below the market value of the licenses, but sufficiently high so as to not to result in unnecessarily many bidding rounds. In setting the minimum bids, PTS has inter alia used price information from auctions in the same and similar frequency bands in other countries.

17.1.2008
What are points?
The auction encompasses 15 frequency blocks (14 FDD blocks and one TDD block). Each frequency block has been assigned a value indicated in points: the FDD frequency blocks have been assigned 1 point each and the TDD frequency block has been assigned 5 points. All available frequency blocks amount to 19 points.

In each bidding round, a bidder may bid for no more than 14 points (what is known as a ‘spectrum cap’). Applicants must submit a bank guarantee that corresponds to at least 9 400 000 kronor per point for which the applicant wants to have an opportunity to bid in the auction.

PTS also utilises the points concept in order to calculate the activity and eligibility of bidders in the auction, see Section 6.6 of the Open Invitation.

17.1.2008
What is the difference between activity and eligibility?

The eligibility of a bidder, which is indicated as a number of points, determines the bidder’s right to place bids in the bidding rounds of the auction. In the first bidding round, the eligibility of the bidder is decided by the amount of the bank guarantee. To retain its eligibility, a bidder must, as a rule, remain active during the auction.

The activity of the bidder is calculated as a number of points at the end of each bidding round. The eligibility in the coming round is then calculated as the activity plus points gained by the reactivation of bids.

For further information, see Section 6.6 in the Open invitation.

17.1.2008
Which language will the interface of the auction system be in?
English.

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Payment and assignment of licences


Timetable


Overall information

28.1.2008
Which version takes precedence if there are discrepancies between the Swedish and English versions of the documents (the Regulations, the Open Invitation and other documents)?

The Swedish version takes precedence. The English translations are provided as a service and for information only.

17.1.2008
What is the cost for participation in the auction?
Applicants are not required to pay an application fee. However, applicants must submit bank guarantees which may entail costs. The purpose of the bank guarantee is to serve as security for the claim for the auction amount on the winning bidders. Those who win the bidding must pay an auction amount (i.e. the winning bid) and an administrative charge. Additionally, after the assignment of the licenses, an annual fee is to be paid for each license. Bidders who are not assigned a license do not need to pay anything to PTS and their bank guarantees will be returned as soon as possible after the auction. In addition to the above, work will be required by applicants to study the auction rules and to participate in the auction. The auction is foreseen to take 2 to 10 working days.

17.1.2008
Will the names of participants in the auction be published?

PTS does not intend to publish the applicants’ and bidders’ names before a decision has been published on the final assignment of licenses. PTS does not intend to publish the amount of bids that are not the winning bids.  

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