Canberra, May 20, 2026, 19:04 AEST
Australia’s communications regulator has set a preferred price of A$7.32 billion for renewing major mobile and fixed-wireless spectrum licences, sticking with higher fees despite efforts by Telstra, Optus and TPG Telecom to get them cut. The move keeps the debate alive over the cost of airwaves, with the focus shifting to phone bills, network spending and how telcos compete.
Telstra, Optus, TPG and NBN Co own the licences supporting fixed wireless broadband and over 30 million mobile services, according to the Australian Communications and Media Authority. Spectrum covers the radio frequencies used for mobile and wireless internet. Fixed wireless broadband gives homes and businesses internet through radio, not cables.
Timing is key here. Renewal applications for the 850 MHz and 1800 MHz bands start June 18, with most licences expiring from 2028 to 2032. Carriers now see a firm price they’ll need to factor into capital spending, though spectrum in bands expiring later could still see pricing shifts if benchmark data changes.
ACMA Chair Nerida O’Loughlin pushed back against criticism, calling the price a “market rate” and denying the regulator gave industry a break or hiked the charge to boost government revenue. The A$7.32 billion valuation comes in just under the A$7.34 billion preliminary figure from December. ACMA
ACMA relied on benchmarking to compare Australian spectrum prices with similar domestic and overseas cases. The agency brought in UK-based DotEcon to review the approach. DotEcon said ACMA followed its advice, calling the method “implemented logically and accurately”, but also cautioned on the selection of country samples. ACMA
Spectrum prices aren’t shifting the same across bands. ACMA data showed 700 MHz and 850 MHz prices dropped from December, but 1800 MHz and 2 GHz went up. Prices for 2.3 GHz and 2.5 GHz also increased, and 3.4 GHz moved lower. Lower frequencies are valued for reach and building penetration. Mid-band is where most fast data capacity comes from.
Telstra and TPG Telecom pushed back after the decision. A Telstra spokesperson said the industry had pointed out “serious flaws” in the proposed methodology and warned it could hurt customers and investors. TPG Telecom called it a “big new tax on mobile use” and said consumers would end up paying. Capital Brief
ACMA’s own commissioned report took a different view. Ian Martin, telecommunications analyst at Ian Martin Advisory, said all four companies should have enough cash earnings through FY33 to cover regular capex and licence renewal payments. He called the funding a “straightforward matter of MNO capital management”.
The report finds the cost burden remains uneven. TPG’s share of renewal costs eats up more of its expected earnings than Telstra’s or Optus’s under the A$7.34 billion plan, while NBN Co would pay far less. That’s the edge for the competition case: Telstra is still the top mobile player, and both Optus and TPG rely on spectrum to keep competing, particularly beyond the major cities.
ACMA says renewing current licences is better for keeping service going and maintaining competition, since the spectrum is already used. Deputy Chair Adam Suckling said before that if the agency held an auction for encumbered spectrum, a big operator could take over spectrum from a smaller player, which would hurt coverage, speeds and service availability.
Consumer groups and telcos are not on the same page. ACCAN pushed for more rules on infrastructure and coverage with renewals, but the carriers pressed for lower charges. Telcos said higher spectrum fees could end up in retail prices.
Payment terms give some breathing room but are not instalments. ACMA said licensees who apply in the first nine months of a renewal window will usually pay two months before their new licence kicks in, instead of much earlier. But it said paying the full amount up front is still the standard method.
But this might not settle things. Telcos could still try to push back, either through politics or business moves. Consumers are waiting to see if operators point to spectrum costs as a reason for higher mobile bills. The ACMA has said spectrum pricing by itself shouldn’t push prices up, since total costs for this set of spectrum are going down from previous levels. But the carriers counter that the charge will put pressure on both investment and competition.
The next fixed date is June 18. The 850 MHz and 1800 MHz bands will keep their current pricing until then, with no new benchmark data set before that window. Bands expiring further out, both mobile and fixed-wireless, could still see price changes based on verified awards published at least six months ahead of their renewals.
