Australia at Risk of Missing Out on Better Mobile Networks Due to High Spectrum Costs
Australians will miss out on better mobile coverage, faster mobile broadband, and more resilient mobile networks if telcos are forced to pay overpriced spectrum taxes, according to the Australian Telecommunications Alliance (ATA).
“Mobile networks are critical national infrastructure – investment in mobile coverage and capacity should be encouraged, not treated as a tax-grab,” said ATA CEO Luke Coleman.
The Australian Communications and Media Authority (ACMA) has set the price for expiring spectrum licences – a fundamental requirement for telcos to deliver mobile services – at $7.32 billion, an increase of some $1.3 billion from previous guidance.
“Australians rely on mobile connectivity every day – for keeping in touch with family and friends, running businesses, and especially when they’re in an emergency. Mobile connectivity isn’t just a nice-to-have, it’s an essential part of everyday life,” Mr Coleman said.
“When telcos are forced to overpay for spectrum, it means they have less money to invest in mobile services. Every dollar spent on spectrum is a dollar that can’t be spent on better coverage, faster speeds, and more resilient networks – it’s that simple.”
“Australians benefit from a competitive mobile market. Telecoms is the one and only sector in the Australian economy where the Consumer Price Index has gone down compared to ten years ago – by 23%. At a time when Australians are facing significant cost-of-living pressures, telcos have consistently provided more bang-for-your-buck from your mobile service – but high spectrum taxes put all of this at risk.”
“Australia has three national mobile networks competing to deliver the greatest coverage, the fastest speeds, and the best customer service. This is great for consumers – Australia currently ranks 11th in the world for network excellence, according to OpenSignal. If Australia wants to telcos to keep investing in these networks, then telcos need spectrum at a price that doesn’t impact investment.”
