The Australian Communications and Media Authority (ACMA) has today released its approach to manage the expiring spectrum licences that underpin mobile and wireless broadband services. This spectrum is relied on by the 99 per cent of Australian adults who use mobile services.
The ACMA's preferred position is to renew the licences currently used by Australia's three mobile networks and the wireless component of the NBN. A total market value of $7.3 billion is estimated, with the regulator inviting a final round of views on its pricing methodology.
ACMA Chair Nerida O'Loughlin said that the ACMA's approach best serves the long-term public interest, supporting competition, continuity of services and innovation that will benefit all Australians.
"Renewing these licences will provide certainty for industry and customers, enabling providers to continue to deliver their existing mobile networks while accommodating new technologies that will benefit consumers and businesses nationwide," Ms O'Loughlin said.
"This spectrum is the backbone of the communications networks that support Australians' digital lives, including new services such as those delivered over low earth orbit satellites to Australians in regional and remote parts of the country.
"The ACMA's position on its future use has been made in the best interests of consumers, communities and our economy."
Ms O'Loughlin said the ACMA's approach follows three years of consultations and stakeholder engagement, resulting in 90 submissions expressing views on the process and its outcomes.
Following public consultation and a peer review by highly credentialed spectrum economics firm, DotEcon, the ACMA assessed total renewal costs for mobile and NBN Co spectrum of $7.3 billion, an increase from its preliminary assessment of a range of $5.0-6.2 billion.
The adjustments in market value projections reflect changes to the details of the underlying methodology and an expansion of the benchmarking dataset. The ACMA made these changes based on its consideration of submissions and the expert advice from DotEcon. The ACMA is now seeking stakeholder feedback on the proposed changes.
"Some of the current licensees sought to pay less than our estimations of the market value of the spectrum. 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," Ms O'Loughlin said.
The diverse range of views expressed in the submissions included calls by some stakeholders for the spectrum to be auctioned rather than renewed.
The ACMA carefully considered this option. Based on its extensive analysis of the domestic market and global environment, the ACMA concluded that an auction would not deliver a beneficial outcome under current market conditions and had real potential to adversely impact the competition that benefits consumers.
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.
"Auctions are most effective when dealing with unused spectrum or where they can help new players enter the market and improve consumer outcomes. We have conducted extensive public consultations since May 2023 and have seen no evidence that a new entrant into the national mobile market is likely," Ms O'Loughlin said.
The ACMA's views also include a planned transition for certain metropolitan rail networks and television production services to new licensing arrangements. The arrangements will support existing services to continue uninterrupted but recognise that further consultation and work is required to determine the long-term use of the bands in question as these services transition to new technologies.
"We need to make sure we get the right mix of spectrum, technology, services and regulatory flexibility to ensure that this important asset is delivering long-term public benefits for Australians," Ms O'Loughlin said.
Licensees will still need to apply and have their applications decided on individually, a process that will take place from mid-2026 through to 2030. We have launched a consultation on how this application process will work alongside the consultation on updated pricing methodology.
The ACMA's preferred views on the expiring spectrum licences and responses to submissions is available on the ACMA website. Views on the ACMA's updated pricing methodology and application process can be lodged until 27 February 2026.
