Media Release

Fifteen-year spectrum licence pathway

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced the Australian Government’s approach to the reissue of current 15-year radio frequency spectrum licences.

The licences are due to expire in the period between 2013 and 2017. They are primarily used by telecommunications carriers to provide 2G and 3G mobile phone and wireless services to millions of Australian consumers.

"Wireless spectrum is a valuable public asset. Reissue of the 15-year spectrum licences will provide ongoing access to spectrum for current and next generation communications services," Senator Conroy said.

"I am pleased to announce the Australian Government has recently endorsed a forward process to address this important issue.

"Spectrum licence renewal will be offered, to those telecommunications incumbents who are already using their spectrum licences to provide services to significant numbers of Australian consumers, or who have in place networks capable of providing services to significant numbers of consumers, provided they also meet the public interest criteria."

In 2009, the Department of Broadband, Communications and the Digital Economy released a public discussion paper proposing a set of public interest criteria.

The public interest criteria that received strong support were:

• promoting the highest value use for spectrum;
• investment and innovation;
• competition;
• consumer convenience; and
• determining an appropriate rate of return to the community.

"While each of these criteria is equally weighted, one very important consideration will be price," Senator Conroy said.

"Accordingly, the Australian Government will seek a fee that reflects the scarcity and value of this important resource.

"The Department will soon be approaching certain stakeholders to commence discussions on the possible renewal of their spectrum licences.

"Auction of these licences remains an option if I am not satisfied that renewal is in the public interest."

Spectrum licences that are not being offered renewal will be considered directly by the Australian Communications and Media Authority (ACMA) in accordance with existing legislation.

Senator Conroy also announced other measures designed to enhance the ACMA’s ability to manage and promote efficient use of spectrum.

Subject to proposed legislative amendments, these changes will include:

• re-planning in the 1800MHz band;
• the introduction of coexistence to allow two or more wireless services to share; the same spectrum, subject to the development of provisions to mitigate unacceptable levels of interference; and
• removal of legislative impediments currently preventing the ACMA from considering licence reissue until two years before licence expiry.

Date: 4 March 2010
Contact: Suzie Brady 0408 258 457