Australia’s Telcos Must Pay $7.32 Billion for Spectrum After ACMA Holds the Line

After months of sustained lobbying, competing economic arguments, and a formal industry push for significantly lower pricing, Australia’s major telecommunications carriers have come away empty-handed. The Australian Communications and Media Authority has issued its final determination on spectrum renewal pricing, and the number $7.32 billion is almost exactly where the regulator started.

Telstra, Optus, TPG Telecom, and NBN Co will collectively pay that sum to retain their expiring mobile spectrum licences. The figure is only marginally below the $7.34 billion ACMA flagged in its December preliminary assessment and falls far short of the steep reductions carriers had been seeking.

ACMA Chair Nerida O’Loughlin confirmed the authority had carefully weighed every submission received through the consultation process, but found that many of the industry’s core arguments did not hold up under scrutiny.

What the Industry Was Asking For and What It Got

The gap between what carriers wanted and what the regulator delivered is substantial. Telstra, in a submission to the federal government ahead of the budget, argued the entire industry bill should be capped at $3.9 billion less than half of ACMA’s final figure on the basis that the regulator had overvalued the spectrum asset by more than $3 billion.

The broader sector, through the Australian Telecommunications Alliance, warned that pricing at the proposed level would make it harder for carriers to maintain affordable, fast, and reliable mobile broadband services. Consumer advocacy group the Australian Communications Consumer Action Network took a different but equally pointed angle, arguing that carriers should receive discounted access in exchange for binding commitments to close persistent regional coverage gaps effectively tying any pricing relief to expanded service obligations.

Industry expectations heading into the decision had previously coalesced around a range of $5 billion to $6.2 billion. ACMA’s December figure had already blown past those estimates, and the final ruling confirms that the regulator was not moving significantly from its position.

How the Final Pricing Was Shaped

Before settling on its final number, ACMA reopened consultation and sought additional economic advice from two external consultancies: UK-based DotEcon and Australian firm Ian Martin Advisory. That additional input led to some adjustments across specific spectrum bands, though not the broad reductions the industry had campaigned for.

The pricing framework covers a wide range of frequencies used for mobile and wireless services, including the 700MHz, 850MHz, 1800MHz, 2GHz, 2.3GHz, 2.5GHz, and 3.4GHz bands. Some lower-band spectrum in the 700MHz and 850MHz ranges saw modest price reductions, while several mid-band allocations including the 1800MHz and 2GHz bands were revised upward. The 2.3GHz and 2.5GHz bands experienced small increases, and the 3.4GHz band was trimmed slightly.

What Happens Next

With the pricing settled, the process moves into the renewal application phase. ACMA will open its first renewal application window on June 18, 2026, starting with the 850MHz and 1800MHz bands. Carriers will generally have nine months from each window opening to lodge their applications, with final settlement expected two months before each licence commencement date.

The outcome confirms a clear regulatory position: spectrum is a scarce national resource, and ACMA has valued it accordingly. For carriers, the challenge now shifts to how they absorb a multi-billion dollar renewal bill while managing ongoing pressure on network investment, pricing, and coverage commitments.

Whether the decision ultimately affects the cost of mobile services for Australian consumers remains to be seen but with the industry’s lobbying effort having produced minimal movement, that question will likely be revisited as renewal payment timelines approach.