Australia’s telcos, together with NBN Co, are facing higher costs to keep radio spectrum used for mobile and wireless broadband services than they had lobbied for.
The Australian Communications and Media Authority (ACMA) said it intends to renew spectrum licenses rather than try to auction them off as it has done in previous years.
However, it has also raised its expectations for renewal costs, which will push $7.3 billion, instead of a previously anticipated range of $5 billion to $6.2 billion.
In a discussion paper [pdf], however, ACMA said this is still below what telcos have previously paid in the 2010s, which it said topped $8.2 billion.
Most of the renewals will come up between 2028 and 2032.
ACMA chair Nerida O’Loughlin said the new total cost estimate reflected “market value”, with new benchmarking data impacting the regulator’s calculations.
“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.”
Spectrum licenses for mobile services have long been an issue in Australia, particularly when it comes to pricing and allocation limits.
Telcos generally assert that higher spectrum costs are reflected in service pricing and in their ability to invest in networks particularly outside of the major metropolitan centres.
O’Loughlin said that current market conditions meant that renewal of licenses was favoured over an auction.
“The ACMA’s position is that renewing the licences avoids service disruption for the millions of customers who rely on these mobile networks, supports competition and consumer choice, and maximises the ability of operators to deliver new technologies like 6G and low earth orbit satellite services that will improve connectivity in regional, rural and remote Australia,” the authority said in a statement.
Australian Communications Consumer Action Network (ACCAN) chief Carol Bennett said the revised cost of licenses could result in extra money to fund improvements, such as to the “triple zero ecosystem”.
“ACMA’s revised valuation is more than double the estimates of some industry representatives – who proposed giving telcos cut-price access to valuable spectrum,” Bennett said.
“Spectrum is a scarce and valuable public resource.
“In each and every decision, ACMA must start from a position that serves the public interest before the interests of Australia’s large corporations.”
Industry has until the end of February 2026 to comment on the latest ACMA proposals.