ACMA has rejected suggestions that its decision will harm network investment given operators’ healthy revenue outlook
ACMA completed its review into the price of expiring spectrum licences
On 20 May 2026, the Australian Communications and Media Authority (ACMA) released its preferred pricing for expiring spectrum licences currently held by the country’s three mobile network operators (Telstra, Optus and TPG) and NBN Co to deliver mobile and fixed wireless access (FWA) services. ACMA stated that it had set the total market value for renewing these licences at A$7.32bn (£3.89bn), which Nerida O’Loughlin (Chair, ACMA) considered reflect a “careful, evidence-based assessment of the value of an important public asset”. According to O’Loughlin, spectrum is a finite and valuable national resource, and the price the regulator has set follows a rigorous benchmarking process designed to reflect the market value of the relevant frequencies and promote the long-term public interest, including to ensure the appropriate return to Australian taxpayers.
The final valuation reflects the fair market value of an important public asset
ACMA’s final valuation is a slight increase on the preliminary estimate of A$7.34bn (£3.90bn) released in December 2025. This updated figure follows further public consultation, expert review and refinements to the regulator’s benchmarking methodology, including additional datasets. ACMA commissioned further independent advice to help address substantial stakeholder feedback and ensure recommendations from the first peer review had been accurately incorporated. Additional third-party input also found that mobile operators would have a strong capacity to fund (i.e. renew) their licences under ACMA’s pricing valuation. ACMA therefore believes that the evidence indicates that mobile operators will see increasing revenue over the medium-term, enabling continued investment in their networks in metropolitan, regional and rural areas. while paying the market rate for access to an important public asset. Remaining mindful of the need to support investment in mobile and FWA networks, ACMA considers its refined pricing approach gives licensees greater certainty and predictability.
850MHz and 1800MHz will be the first bands up for renewal
The first renewal application periods open on 18 June 2026 for the 850MHz and 1800MHz bands. Under ACMA’s preferred approach, licensees that apply within the first nine months of the relevant application period would pay two months before the renewed licence commences. The regulator stated that this approach supports early applications, gives industry time and certainty to facilitate capital management, and avoids incentives for delayed renewal applications. ACMA will continue to update benchmark datasets for later-expiring spectrum bands where appropriate and will include new spectrum awards only where results are published and verified at least six months before the relevant renewal application period.
Operators claim that they will not be able to absorb the increased renewal price
ACMA stated that throughout the consultation process, it heard views that its preferred price was either too high or too low. Some stakeholders argued that it had discounted the price for industry, while others suggested we had inflated it to raise additional revenue for the Government. According to the regulator, “neither claim is correct”. It added that spectrum pricing alone should not lead operators to increase prices for consumers, as their aggregate costs for the spectrum in question would be lower than what they currently incur. However, ACMA’s decision has received strong and immediate backlash from the Australian Mobile Telecommunications Association (AMTA), which argued that the final valuation is A$1.3bn (£690m) higher than what was originally proposed in April 2025. AMTA stated the increase cannot be absorbed by operators, forcing them to choose between “sacrificing infrastructure, innovation and investments” or raising prices, while Telstra has suggested that it could launch a legal challenge. The renewal price is also stark in contrast to recent decisions in Europe, where regulators in Germany and Spain have extended spectrum licences at no cost, either conditionally or unconditionally, to encourage network investment.
