AMTA urges ACMA to temper spectrum licence renewal pricing to support 6G investment

Friday 27th April: The Australian Mobile Telecommunications Association has called on the Australian Communications and Media Authority to set renewal prices for expiring spectrum licences at levels that support ongoing network investment, including in future 6G rollouts, and reflect long-term declines in spectrum valuations.

In a submission to ACMA’s consultation on spectrum licences due to expire be tween 2028 and 2032, AMTA backed a direct benchmarking approach using mobile service revenue, bandwidth and a population deflator index, while cautioning against a static pricing model that doesn’t factor in declining market values.

“AMTA supports the ACMA’s use of benchmarking to model the pricing for the renewed ESLs,” said CEO Louise Hyland. “However, MNOs remain concerned the proposed prices are overstated due to their approach to the modelling with insuficient weight being given to the ongoing downward trend in spectrum prices.”

Louise noted that spectrum valuations have declined by 39% over the past seven years and warned that future releases, including the upper 6GHz and 600MHz bands, would likely continue that trend. “We are asking the ACMA to set spectrum licence renewals at prices that address these concerns along with enabling MNOs to increase their investment in network infrastructure and new technologies, such as 6G,” Hyland said, adding that such investment was “critical for continuing to improve customer experience and Australia’s productivity.”

With around 80% of existing spectrum licences due for renewal in the 2028–2032 window, AMTA also proposed that ACMA allow mobile network operators to spread payments over the life of the licence term to help manage cash flow impacts. The licences in question span major spectrum holdings in the 700MHz, 850MHz, 1800MHz, 2GHz, 2.3GHz, 2.5GHz and 3.4GHz bands.

AMTA also used its submission to outline member views on the possible development of a secondary licensing framework – a concept ACMA floated earlier this year as a way of facilitating access to unused spectrum without imposing use-it-or-share-it obligations. In a report to the federal government, ACMA said such a framework would enable it to play an “active facilitation role” in granting secondary access to spectrum, subject to interference, policy, and commercial considerations.

While ACMA has not yet formally consulted on the idea, AMTA signalled concern that it could distort primary licence valuations and undermine licence holders’ certainty. “There are existing mechanisms for secondary trading and third-party access to spectrum, and these should be exhausted before a secondary licence is considered,” the Association said.

It added that any secondary framework should require consultation with the incumbent licensee and assess whether the proposed use aligns with the existing use of the spectrum. “Pricing of secondary licences should consider the total impacted area that will result from granting the licence and not just the area within the application,” AMTA said, arguing that spectrum propagation effects could extend well beyond an assigned boundary.

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