Telekom-Control-GmbH Mariahilferstrasse 77-79 A-1060 Vienna, Austria RFQZ 5/00 Vienna, September 15, 2000 Tender Documentation for Wireless Local Loop Frequency Allocations in the 26 GHz Frequency Range NON-BINDING TRANSLATION RFQZ 5/00 September 15, 2000 Table of Contents 1 INTRODUCTION...................................................................................................... 4 1.1 GENERAL CONDITIONS UNDER AUSTRIAN LAW ...................................................................................... 4 1.2 ALLOCATION PROCEDURE SCHEDULE................................................................................................... 4 2 FREQUENCY ALLOCATION PROCEDURE........................................................... 6 2.1 STEPS IN THE PROCEDURE .................................................................................................................. 6 2.2 OBJECTS OF THE AUCTION................................................................................................................... 6 2.3 APPLICATIONS..................................................................................................................................... 9 2.4 BANK GUARANTEES............................................................................................................................. 9 2.5 OPENING BIDS IN THE AUCTION.......................................................................................................... 10 2.6 TERMS OF PARTICIPATION ................................................................................................................. 11 2.7 AUCTION PROCEDURE ....................................................................................................................... 12 3 FREQUENCY SPECTRUM.................................................................................... 15 3.1 DIVISION OF THE FREQUENCY SPECTRUM........................................................................................... 15 3.2 TERMS OF FREQUENCY USE .............................................................................................................. 17 3.3 SUPERVISORY RIGHTS....................................................................................................................... 21 4 APPLICATION DOCUMENTS ............................................................................... 22 4.1 ORGANIZATIONAL STRUCTURE ........................................................................................................... 22 4.2 TECHNICAL ABILITIES, QUALITY OF SERVICES AND COVERAGE OBLIGATIONS ....................................... 23 4.3 FINANCIAL STRENGTH ....................................................................................................................... 24 4.4 DECLARATION OF COMPLETENESS ..................................................................................................... 25 5 ARRANGEMENTS................................................................................................. 26 5.1 RIGHTS TO APPLICATION DOCUMENTS................................................................................................ 26 5.2 APPLICATIONS FOR FREQUENCY ALLOCATION..................................................................................... 26 5.3 AUTHORIZED CORRESPONDENCE RECIPIENTS .................................................................................... 27 5.4 CLARIFICATIONS................................................................................................................................27 5.5 INQUIRIES – CONSULTANTS ............................................................................................................... 27 5.6 INSPECTION OF RECORDS.................................................................................................................. 27 5.7 REVIEW AND INFORMATION OBLIGATIONS ........................................................................................... 28 5.8 PUBLICATION .................................................................................................................................... 28 5.9 ANNULMENT OF THE TENDER, DISCONTINUATION OF THE PROCEDURE................................................. 28 6 FEES...................................................................................................................... 29 6.1 FREQUENCY LICENSE FEE ................................................................................................................. 29 6.2 SPECTRUM FEES...............................................................................................................................29 6.3 CONSULTANCY COSTS....................................................................................................................... 29 Telekom-Control GmbH 2 RFQZ 5/00 September 15, 2000 Illustrations FIGURE 1: PROCEDURE STEPS......................................................................................................................... 5 FIGURE 2: DIVISION OF REGIONS ..................................................................................................................... 7 FIGURE 3: ASSIGNMENT OF DUPLEX CHANNELS TO FREQUENCY PACKAGES .................................................... 16 Tables TABLE 1: ALLOCATION PROCEDURE SCHEDULE............................................................................................... 5 TABLE 2: OBJECTS OF THE AUCTION............................................................................................................... 8 TABLE 3: LOT RATING PER FREQUENCY PACKAGE AND REGION....................................................................... 8 TABLE 4: AMOUNT OF BANK GUARANTEES PER FREQUENCY PACKAGE AND REGION....................................... 10 TABLE 5: OPENING BID PER FREQUENCY PACKAGE AND REGION ................................................................... 11 TABLE 6: FREQUENCY RANGES FOR DUPLEX CHANNELS 1 – 18 .................................................................... 16 TABLE 7: ASSIGNMENT OF DUPLEX CHANNELS TO FREQUENCY PACKAGES .................................................... 16 TABLE 8: MAXIMUM SPECTRAL POWER FLUX DENSITY .................................................................................. 19 TABLE 9: PREFERRED FREQUENCY CHANNELS FOR GERMANY, LIECHTENSTEIN AND SWITZERLAND ................ 20 Appendices Appendix A Index of Districts and Municipalities in Allocation Regions Appendix B Sociodemographic Data on Allocation Regions Appendix C Declaration of Completeness Appendix D Application Form Austrian Laws Cited in this Document TKG Telecommunications Act AVG General Administrative Procedures Act HGB Commercial Code AktG Securities Act KartG Anti-Trust Act BörseG Stock Exchange Act ZustG Correspondence Act Telekom-Control GmbH 3 RFQZ 5/00 September 15, 2000 1 Introduction Telekom-Control GmbH is carrying out a procedure to allocate frequencies in the 26 GHz frequency range for wireless local loop (WLL) systems. 6 Regions consisting of 5 frequency packages each will be awarded, with each frequency package consisting of several duplex frequency channels. 1.1 General Conditions under Austrian Law This invitation to tender is being carried out on the basis of the Austrian Telecommunications Act (TKG) BGBl. I No. 100/1997 , in its current version ( BGBl. I No. 26/2000). In addition, the regulations regarding procedure in Austria are likewise applicable, especially the General Administrative Procedures Act of 1991 (AVG) BGBl No. 51 in its current version (BGBl I No. 29/2000). Due to the amendment to the Telecommunications Act (BGBl I N0. 26/2000) that went into effect on June 1, 2000, responsibility for the allocation of frequencies intended for the rendering of public telecommunications services was transferred from the Austrian Telecommunications Offices to the regulatory authority. The frequency allocation procedure is now governed by § 49a TKG. 1.1.1 Frequency Allocation Procedure Pursuant to § 49a par. 1 TKG, the regulatory authority is to allocate the frequencies placed under its authority to the applicant that fulfills all general prerequisites under § 15 par. 2 no. 1 and 2 TKG and guarantees the most efficient use of frequencies. This will be determined by the amount of the frequency license fee offered. The frequency allocation procedure is divided into two parts: 1. Once the applications have been submitted, the regulatory authority will check whether all prerequisites have been met in accordance with § 15 par. 2 no. 1 and 2 TKG (cf. Section 4). Those applications which do not fulfill the prerequisites will be excluded from the frequency allocation procedure in accordance with § 49a par. 6 TKG. The rules for determining the standing high bid in the course of the auction will be defined by Telekom-Control GmbH in accordance with § 49a par. 7 TKG and sent to the applicants at the latest 2 weeks before the start of the auction. Telekom-Control GmbH plans to publish a draft of the auction rules on its web site (www.tkc.at) in December 2000 and to send the Rules of Procedure to the applicants as soon after the application deadline as possible. 2. The second part of the frequency allocation procedure will be carried out in the form of an auction. 1.2 Allocation Procedure Schedule The table below contains the most important dates in the allocation process. The exact time of the auction will be announced to the applicants once Telekom-Control GmbH has made its decision on this matter.