Feeds

Mobile carriers face big ticket spectrum costs

800 Mhz set to make the govt a motza

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.