Feeds

Mobile carriers face big ticket spectrum costs

800 Mhz set to make the govt a motza

Internet Security Threat Report 2014

Australian mobile carriers are turning activist in the lead up to the Federal Government’s final determination on the pricing for retaining their 800MHz mobile licences.

According to a draft determination issued by communications minister Stephen Conroy late last year mobile network operators Telstra, Vivid Wireless and Vodafone Hutchison Australia (VHA) could be up for a combined $AU1.4 billion price tag to retain their allotted 800MHz spectrum.

In the late 1990s, the government auctioned the spectrum licences now used to deliver 2G and 3G mobile services, and which are due to start expiring from 2013.

What's getting the carriers excited is the potential price of their renewal. A report from Plum Consulting suggests a methodology based on a per-MHz, per-POP valuation between $AU0.50 and $AU1.20.

The report says that international benchmarks suggest the spectrum has a value much higher than the price originally fetched at auction.

The Australian Financial Review reports that the draft determination values the spectrum at $AU758 million to Telstra and $AU560 to VHA.

While the industry consultation period on the proposed pricing structure is still open to industry comment until January 16, the Australian Financial Review suggests that the draft determination will not be altered.

The Department of Broadband, Communications and the Digital Economy did not respond to queries on the issue.

Senator Conroy has the power under the Radiocommunications Act 1992 to specify classes of services for which it would be in the public interest to re-issue licences to the same licensees and to direct the Australian Communications and Media Authority regarding the value of the spectrum.

The ACMA will be holding a spectrum auction workshop next Friday for industry and media to discuss the issues surrounding the re-issuing of the licences. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.