- ACMA considers rollout targets and “use-it-or-lose-it” penalties for unused spectrum.
- Consultation explores localized licenses and private networks in remote areas.
What happened: New spectrum rules aim to boost coverage and efficiency
The Australian Communications and Media Authority (ACMA) has launched a landmark consultation to overhaul spectrum management, targeting improved mobile coverage and efficient frequency use. Announced on Wednesday, the proposal includes potential rollout obligations for telecom operators, penalties for underused spectrum, and new licensing models for localized and private networks in remote regions.
Communications Minister Michelle Rowland directed ACMA to explore attaching “use-it-or-lose-it” (UIOLI) conditions to future spectrum allocations. These measures aim to ensure telecom providers meet coverage targets or risk losing unused frequencies. Currently, spectrum is auctioned without obligations, leading to concerns about underutilisation in rural areas. The regulator will also assess issuing localised mobile licences in the 2.3GHz band, enabling smaller providers to deliver tailored services in underserved markets.
ACMA Deputy Chair Adam Suckling emphasised the need for innovation in smaller markets: “While possible under current rules, it’s not happening. We want to remove impediments.” The consultation also examines long-term public interest criteria for renewing expiring licences (2028–2032), prioritising spectrum efficiency, innovation, and investment. Preliminary findings suggest renewing mobile broadband licences, including NBN Co’s fixed wireless access (FWA) spectrum, aligns with public interest due to its role in regional connectivity.
The 2.3GHz band is under particular scrutiny for private networks in remote areas, which could enhance disaster resilience and response. ACMA estimates the renewal value of existing mobile and NBN Co spectrum at A$5–6.2 billion, based on international benchmarks.
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Why it’s important
Spectrum management is critical for balancing commercial interests with public connectivity needs. Australia’s current auction system lacks incentives for operators to deploy services in less profitable rural areas, exacerbating the urban-rural digital divide. Introducing rollout targets and UIOLI conditions could compel telecom giants like Telstra, Optus, and TPG to prioritise coverage expansion.
Localised licences in the 2.3GHz band may empower smaller players to innovate in niche markets, fostering competition. Private network licences could revolutionise industries like mining and agriculture in remote regions, enabling IoT and automation. Meanwhile, renewing existing licences under public interest criteria ensures spectrum remains aligned with national goals, such as closing connectivity gaps and supporting emergency services.
The financial stakes are high. With spectrum assets valued at up to A$6.2 billion, decisions here will shape Australia’s telecom landscape for decades. International precedents, such as the UK’s coverage obligations and Canada’s rural broadband funds, highlight the potential for similar reforms to drive equitable access. ACMA’s proposals could set a global benchmark for balancing market dynamics with societal needs.
