Consumers stand to benefit above corporate interests in a revised proposal from telco regulator ACMA, who will raise spectrum licence fees to more closely reflect true market values, says Australia's peak national communications consumer body, ACCAN.
This decision is a departure from ACMA's Preliminary views on Expiring Spectrum Licences - and follows concentrated advocacy by ACCAN and contributions from economists and competition experts.
Today's proposal will see spectrum licence fees increased from $5 - 6.2 billion to $7.3 billion – an increase of between $1.1 - 2.3 billion through the licences period.
ACCAN CEO Carol Bennett said the revised approach was a material improvement on ACMA's first position but raised serious questions about how the regulator arrived at its initial views.
"ACMA has clearly shifted its approach in response to strong evidence and increased public scrutiny, but consumers are entitled to ask why this decision is so different from its original position," Ms Bennett said.
"ACMA's revised valuation is more than double the estimates of some industry representatives – who proposed giving telcos cut-price access to valuable spectrum.'
"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."
"Now that ACMA has decided to renew licences rather than use the OECD's "gold standard" auction approach, it is essential that strong licence conditions are applied to ensure maximum consumer benefit - particularly clear, enforceable obligations to improve coverage, service quality and pricing, particularly in underserved communities."
ACCAN said that part of the additional funding that has been identified in the licencing re-evaluation could be allocated to the modernisation of Australia's ageing Triple Zero ecosystem.
"Handing incumbents billions of dollars in discounts without clear consumer benefit was always difficult to justify," Ms Bennett concluded.
About us:
The Australian Communications Consumer Action Network (ACCAN) is Australia's peak communication consumer organisation. The operation of ACCAN is made possible by funding provided by the Commonwealth of Australia under section 593 of the Telecommunications Act 1997. This funding is recovered from charges on telecommunications carriers.
