Australia’s mobile network operators have expressed disappointment universally at the prospect of paying up to $2.3 billion more than expected for spectrum they need to operate mobile and wireless broadband networks.
The carriers had collectively been expecting license renewal fees in the range of $5 billion to $6.2 billion, based on Australian Communications and Media Authority (ACMA) calculations provided as part of a consultation process.
However, the ACMA today released new guidance revaluing the spectrum licenses and pushing the total renewal cost up to $7.3 billion.
ACMA chair Nerida O’Loughlin said the new total cost estimate reflected “market value”, based on new benchmarking data informing the regulator’s calculations.
However, Australia’s top mobile carriers have responded to the decision with disdain.
Australian Telecommunications Alliance chief executive Luke Coleman said that the ACMA’s previous guidance was already 50 percent higher than expected and that higher costs would constrain mobile service coverage.
“Every dollar spent on spectrum is a dollar that can’t be invested in mobile coverage, capacity, and competition. This significant increase in fees means Treasury gets more cash and customers get less coverage,” Coleman said.
Similarly, a Telstra spokesperson said that the decision would put downward pressure on mobile network investments.
“ACMA’s revised estimate for spectrum pricing is considerably higher than previously forecast. Higher costs make it harder for us to invest in the services customers count on, and this is a step in the wrong direction,” Telstra’s spokesperson said.
Optus expressed similar concerns, saying that ACMA’s revaluation threatened its ability to invest in network upgrades, singling out public safety systems and regional network coverage as being of particular concern.
“Spectrum is essential for enabling national connectivity, supporting public safety systems, and powering next-generation technologies including regional coverage, 5G, low-earth orbit satellite services, and the evolution toward 6G,” an Optus spokesperson said.
“Higher priced spectrum ultimately puts at risk our capability to continue investing in network upgrades and the regional infrastructure and services Australians deserve and expect.”
TPG Telecom accused the federal government of using the expiring license renewal scheme to make an unjustifiable cash-grab.
“Spectrum should be treated as a strategic national asset, not a cash cow. Every extra dollar spent on inflated spectrum fees is a dollar not invested in better coverage, reliability, or innovation,” TPG Telecom’s spokesperson said.
“The growing demand for mobile networks to operate as essential infrastructure is fundamentally at odds with imposing extraordinary fees that drain resources from the very services Australians rely on every day.”
NBN Co was also contacted for comment.
ACMA defended the revaluation arguing that the fees were still less than those carriers paid in the 2010s, which it said topped $8.2 billion.
“Some of the current licensees sought to pay less than our estimations of the market value of the spectrum,” O’Loughlin said.
“We considered all of the evidence and arguments, but our preferred position is that using the current market value is a fair price to pay for a public asset.”
ACMA also revealed today that it preferred renewing the licenses rather than putting them up for auction.
O’Loughlin said that current market conditions meant that renewal of licenses was favoured over an auction.
Most of the renewals will come up between 2028 and 2032, and ACMA said that carriers would still need to apply for licences individually in a process expected to start from mid-2026.
The regulator said that it had launched a separate industry consultation process to finalise the application process.
The industry has until the end of February 2026 to comment on the latest ACMA proposals.