The minister had just released ‘instruments' that enable the reissue of spectrum licences for mobile phone and wireless broadband services in Australia for incumbent holders, which relates to carriers Telstra, Optus, Vodafone and vividwireless.
This decision, announced today, could mean that consumers may have to pay more for the services, as telcos could pass the massive spectrum costs onto the consumer.
In particular, the new spectrum release comes as there is to be explosion in new next gen 4G LTE smartphones, tablets and wireless dongles this year, with Telstra releasing the first 4G handset in Australia HTC Velocity, last month, and the rest to follow suit.
Senator Stephen Conroy will also impose competition limits on the sale of the spectrum in what Conroy's Communication dept terms as "digital dividend auction," where all the main telcos-as well as potential newcomers-will pay billions to access.
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Carriers To Pay $3B For 4G Spectrums Announcement TodayConroy has also placed a competition limit of 2x20 MHz which will apply to spectrum in the 700 MHz band and a limit of 2x40 MHz to spectrum in the 2.5 GHz band and no entity will be permitted to purchase more than this limit for each band.
"These limits are designed to ensure there is a choice of providers in the mobile sector for the advanced services that will be provided over the digital dividend spectrum. This is a good outcome for Australian consumers," Senator Conroy said.
The limits have been set to ensure a level playing field for the three bidders most likely to participate in the auction—Telstra, Optus and Vodafone Hutchison Australia—without precluding a potential new entrant, according to the Communications Dept.
"Spectrum is a national resource that needs to be managed in the public interest," Conroy said today, and will provide "certainty" into the future.
The instruments released by Controy will enable the Communications and Media Authority to reissue the licences to existing licence holders, expected to raise approximately $3 billion over the next four years.
