Short-sighted spectrum “stealth tax” will put pressure on investments, consumer plan costs

29 May 2026: The Australian Mobile Telecommunications Association (AMTA) has warned that mobile plan prices could be forced to rise following the Australian Communications and Media Authority’s (ACMA) decision to proceed with significantly higher spectrum renewal pricing.

The peak mobile industry body warned the regulators move was effectively a “stealth tax” putting pressure on cost of living and infrastructure investments – especially those in regional areas. AMTA Chief Executive Louise Hyland said the decision forced the telecommunications industry into a set of avoidable trade-offs at the worst possible time for households and businesses.

“Spectrum is not an abstract input. It is a core cost of delivering mobile services,” Ms Hyland said. “Last April, we were told this cost was almost $1.3 billion dollars less than the bill which has been delivered today.

“The reality is this cost cannot be easily absorbed. It will flow through to either reduced investment, higher prices, and likely both. Either way consumers will pay the price.”

Spectrum is the invisible superhighway in our skies which is used to carry mobile telecommunications, as well as emergency service frequencies, radio and television. AMTA has consistently warned a substantial increase in the cost of renewing existing spectrum licences is inconsistent with the long-term public interest and disconnected from the economic realities of the sector. Ms Hyland said the consequences will be uneven — and regional communities would bear the brunt.

“In metropolitan areas, there are often more options to manage network demand. In regional Australia, those options are limited. Investment decisions are already finely balanced,” she said.

“When costs increase, it is regional capacity upgrades, investment in resilience and network expansion which are most at risk of delay.”

AMTA warned that the decision comes at a time when Australian households could least afford further rising costs.

“Telecommunications has been one of the few sectors that has maintained relatively stable prices over the past decade, even as data usage has surged,” Ms Hyland said. “This decision risks reversing that trend. Every additional dollar spent on spectrum is a dollar that cannot be spent on improving regional coverage, strengthening network resilience, expanding capacity in growing regional centres, or preparing networks for future demand.”

AMTA did welcome new payment terms for mobile network operators, designed to encourage early spectrum licence renewals. The ACMA has reduced the time for payment of renewals from 19 months in advance to two months in advance of licence renewal where the application is made within the first nine months of the two-year application window.

“This is sensible policy and will encourage certainty for customers and the industry,” said Ms Hyland.

However, Ms Hyland reiterated that the pricing methodology underpinning ACMA’s decision was fundamentally flawed, relying heavily on international auction benchmarks not comparable to licence renewals.

“Renewals are about continuity and investment certainty. Auctions are about competitive bidding for new spectrum. Treating them as equivalent risks overstating value and distorting outcomes,” Ms Hyland said. “There are no winners from this approach,” she said.

“Any short-term uplift to Treasury will be offset by reduced investment, slower network upgrades, and weaker productivity growth.”

AMTA called on the Government to reconsider the pricing framework to ensure it aligns with the long-term public interest.

“We support a fair return for the use of public spectrum. But ‘fair’ must reflect economic reality,” Ms Hyland said.