Spectrum Auction Act

With many Analogue and Digital television stations now moving onto the internet andthrough cable or satelite. There has become space for Communications companies to utilisethe radio spectrum for use in wireless communications.

There has been recent pressure from the private sector to release more spectrum on licensefor next generation use of mobile technologies.

After accumulating the unused bandwidth the government will then auction onwards the600Mhz bandwidth and the 700Mhz bandwidth to communications companies.

The 600MHz bandwidth will be more sought after as the wavelengths are longer and as suchwill be more effective over longer distances. We believe that large multinationalcommunications companies will purchase the rights to these bandwidths for coerage in morerural areas. The 600Mhz will enable companies to have fewer masts that are further apartand as such reduce costs.

The 700Mhz bandwidth will be sought after by smaller communications companies and moreregionalised companies. This will be ideal for metropolitan use. As such the 700Mhz band will be split down into smaller blocks in which companies can bidon.

We also encourage television companies who are not utilising their spectrum to voluntarilyhand it over to the government for auction. The company will then recieve a share of thevalue.

The purchase of the licence for wach block will be valid for 10 years. Companies can sellon the licence to other companies. but the licence will still retrun to the government forreauction after 10 years.

Overall based on projections of other countries who have auctioned off these before weestimate that the income from the Auction will be in the region of 10-15 billion Alb. *

* based on the income of Germany (50.8Billion), UK (38.3 billion)