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Australian competition authority looks at possible competition issues in the next 5G auction

The ACCC has been instructed by the Government to seek feedback ahead of the award of spectrum in the 26GHz band.

Background: In October 2019, the Australian Government approved the allocation of 2.4GHz of spectrum in the 26GHz band across 29 cities and regional centres. The Australian Communications and Media Authority (ACMA), which carries out spectrum awards in the country, plans to run the auction in Q1 2021. At the time of approval, the Government also sought the advice of the Australian Competition and Consumer Commission (ACCC) on allocation limits for the auction process.

The ACCC begins its consultation: On 26 February 2020, the ACCC commenced its consultation with stakeholders on competition concerns related to the 26GHz band. The authority is seeking input on businesses’ ability to compete effectively in relevant markets, and on the relationship between spectrum and apparatus licences. Respondents are also asked to comment on demand for spectrum across different geographic areas, and on whether substitutable spectrum exists for the intended uses of both the 26GHz and 28GHz bands.

What next? In its consultation document, the ACCC does not take any preliminary view on the limitations that should be imposed, though it notes that feedback from organisations outside the telecoms sector will be important in light of the technological innovation 5G will enable across a variety of sectors such as mining, agriculture and manufacturing. The authority accepts submissions until 27 March 2020, and will finalise its advice to the Government by mid-May 2020.