ACMA finalises pricing for expiring spectrum licences

The Australian Communications and Media Authority (ACMA) has announced it has finalised the application and decision‍-‍making process for expiring spectrum licences. Eligible licensees will be able to start applying to renew their licences from 18 June 2026.

Recently, it released its preferred pricing for expiring spectrum licences that support fixed wireless broadband and more than 30 million mobile services across Australia.

The ACMA has set the total market value for renewing these licences at $7.32 billion. The licences are held by Australia’s three mobile network operators — Telstra, Optus and TPG — and NBN Co.

ACMA Chair Nerida O’Loughlin said the preferred prices reflect a careful, evidence-based assessment of the value of an important public asset.

“Spectrum is a finite and valuable national resource. The price the ACMA has set follows a rigorous benchmarking process designed to reflect the market value of the spectrum and promote the long-term public interest,” she said. “Through the consultation process we heard views that our preferred price was either too high or too low. Some stakeholders argued we had discounted the price for industry, while others suggested we had inflated it to raise additional revenue for government. Neither claim is correct.

“After all our analysis and testing, we have concluded that $7.32 billion represents the market rate. It is therefore the appropriate return, ultimately to Australian taxpayers, for the use of this valuable public resource.”

The ACMA commissioned further independent advice from DotEcon, a UK‑based economic consultancy with significant expertise in spectrum valuation, to help address substantial stakeholder feedback and ensure recommendations from the first peer review had been accurately incorporated.

The ACMA also commissioned advice from Ian Martin Advisory, which found that mobile network operators have a strong capacity to fund their licences under the ACMA’s pricing valuation.

The evidence shows mobile operators will see increasing revenue over the medium term, enabling continued investment in their networks in metropolitan, regional and rural areas while paying a fair market value for access to this important public asset.

“Our advice is that spectrum pricing alone should not lead operators to increase prices for consumers, as their aggregate costs for this spectrum will be lower than what they currently incur,” O’Loughlin said. “At the same time, the ACMA has remained mindful of the need to support continued investment in mobile and fixed wireless networks.

“We have refined the pricing approach to give licensees greater certainty and predictability, while ensuring Australians receive fair value for the use of public spectrum.”

Image credit: iStock.com/Phillip Wittke