ACMA backs licence renewals for mobile spectrum

The regulator is now seeking feedback on pricing.

The Australian Communications and Media Authority has released its preferred approach for managing expiring spectrum licences that underpin Australia’s mobile and wireless broadband services.

The spectrum supports services used by about 99 per cent of Australian adults.

The ACMA’s position is to renew the existing licences held by Australia’s three mobile network operators and the wireless component of the NBN, rather than reallocate them via auction.

Under the proposal, the total market value of the spectrum is estimated at $7.3 billion. The regulator is now inviting feedback on its updated pricing methodology and application process.

Nerida O’Loughlin, Chair of the Australian Communications and Media Authority, said the preferred approach was designed to support the long-term public interest.

“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,” O’Loughlin said.

She said the spectrum underpins Australia’s communications networks, including emerging services such as low-earth-orbit satellite connectivity for regional and remote communities.

Pricing and consultation process

The $7.3 billion valuation represents an increase on the ACMA’s earlier estimate of $5.0–6.2 billion. The regulator said the change reflects refinements to its methodology and an expanded benchmarking dataset.

Those adjustments followed public consultation and a peer review by the spectrum economics firm DotEcon. The ACMA received around 90 submissions during three years of consultation and stakeholder engagement.

“Some of the current licensees sought to pay less than our estimations of the market value of the spectrum,” O’Loughlin said. “Our preferred position is that using the current market value is a fair price to pay for a public asset.”

Why ACMA ruled out an auction

Several submissions argued the spectrum should be auctioned rather than renewed. The ACMA said it carefully assessed that option before concluding an auction would not deliver a better outcome under current market conditions.

The regulator said an auction risked undermining competition and could disrupt services relied on by millions of customers. It also noted there was no evidence that a new national mobile entrant was likely.

“Auctions are most effective when dealing with unused spectrum or where they can help new players enter the market,” O’Loughlin said.

Next steps and timelines

The ACMA also flagged planned transitions for some metropolitan rail networks and television production services to new licensing arrangements, as those services move to newer technologies.

Licence renewals will not be automatic. Existing licensees will need to apply, with applications assessed individually between mid-2026 and 2030.

Consultation on the updated pricing methodology and application process is open until 27 February 2026. The ACMA’s detailed position and responses to submissions are available on its website.

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