Telcos must not pocket windfall profits through reduced spectrum licence fees, and instead commit to reinvesting funds saved in reduced fees in ways which benefit consumers, peak communications consumer body ACCAN has urged in a position paper released today.
Spectrum is a finite and valuable public asset. The Australian Communications and Media Authority (ACMA) is proposing to renew spectrum licences for Australia's major telcos, rather than take them to auction as global best practice and academic consensus would recommend.
Today's position paper reaffirms ACCAN's view that auctions are the best way to manage spectrum licences. It also builds on that recommendation: if ACMA is to pursue its licence renewal approach, they should put in place legal guarantees that money saved by telcos will be reinvested into a mix of further network investment and price reductions for consumers.
ACCAN CEO Carol Bennett said that the public is being sold short on this approach, and that if ACMA will not reconsider its decision, it needs to demand that telcos commit money saved to causes which will help consumers, rather than boosting telco bottom lines.
"Spectrum is a scarce public resource. If ACMA won't take these licences to auction, it must at the very least require that the money saved by telcos is reinvested in ways that help consumers, rather than simply padding telco profits," Ms Bennett said.
