The Australian Communications and Media Authority (ACMA) has released details of its approach to manage expiring spectrum licences, including spectrum used for television outside broadcast (TOB).
Sitting in the 2.5 GHz mid-band gap, non-fixed TOB spectrum is currently licenced nationally to broadcasters including ABC, Channel 7, Nine Network and Network 10. TOB services currently support the provision of news coverage and other out-of-studio broadcasts.
These national licences will expire on 30 September, 2029, with the renewal application process due to commence 1 October, 2027.
The ACMA has announced it will transition the national licences to apparatus licencing with consultation on initial apparatus licensing arrangements to take place in 2027 while it assesses the long-term use of the band.
An apparatus licence allows users operate transmitters or receivers in a specific place or area. An apparatus licence may be: an assigned licence where ACMA allocates a frequency to the applicant; or a non-assigned licence where applicants share certain frequencies with other users. While an apparatus licence may be issued for up to 20 years, most are issued for a period of year.
According to the ACMA, “Broadcasters agree with us that a transition to apparatus licensing will ensure that their services can continue to operate, with licensing and pricing arrangements that suit them better. We will investigate how the spectrum they currently occupy should be optimally used and allocated into the future. In the intervening period, we can use this spectrum more efficiently by authorising additional use cases.
“TOB stakeholders considered that a transition to an apparatus licensing framework provided the right balance of certainty to support their existing services, and the flexibility to transition to different spectrum in the future at a time that is commercially and operationally feasible. They noted that our broader spectrum planning framework, including annual consultation on the Five-year spectrum outlook, provided sufficient certainty.
“Importantly, apparatus licences ensure that existing services will not be interrupted. They provide flexibility for licensees to transition to new arrangements where and when appropriate, and for the ACMA to manage the spectrum efficiently and effectively.”
MOBILE SERVICES
The ACMA also outlined its approach to manage the expiring spectrum licences that underpin mobile and wireless broadband services. This spectrum is relied on by the 99 per cent of Australian adults who use mobile services.
The ACMA’s preferred position is to renew the licences currently used by Australia’s three mobile networks and the wireless component of the NBN. A total market value of AUD$7.3 billion is estimated, with the regulator inviting a final round of views on its pricing methodology.
ACMA Chair Nerida O’Loughlin said that the ACMA’s approach best serves the long-term public interest, supporting competition, continuity of services and innovation that will benefit all Australians.
“Renewing these licences will provide certainty for industry and customers, enabling providers to continue to deliver their existing mobile networks while accommodating new technologies that will benefit consumers and businesses nationwide,” Ms O’Loughlin said.
“This spectrum is the backbone of the communications networks that support Australians’ digital lives, including new services such as those delivered over low earth orbit satellites to Australians in regional and remote parts of the country.
“The ACMA’s position on its future use has been made in the best interests of consumers, communities and our economy.”
Ms O’Loughlin said the ACMA’s approach follows three years of consultations and stakeholder engagement, resulting in 90 submissions expressing views on the process and its outcomes.
Following public consultation and a peer review by highly credentialed spectrum economics firm, DotEcon, the ACMA assessed total renewal costs for mobile and NBN Co spectrum of $7.3 billion, an increase from its preliminary assessment of a range of $5.0–6.2 billion.
The adjustments in market value projections reflect changes to the details of the underlying methodology and an expansion of the benchmarking dataset. The ACMA made these changes based on its consideration of submissions and the expert advice from DotEcon. The ACMA is now seeking stakeholder feedback on the proposed changes.
“Some of the current licensees sought to pay less than our estimations of the market value of the spectrum. We considered all of the evidence and arguments, but our preferred position is that using the current market value is a fair price to pay for a public asset,” Ms O’Loughlin said.
The diverse range of views expressed in the submissions included calls by some stakeholders for the spectrum to be auctioned rather than renewed. While the ACMA considered the option, it concluded that an auction would not deliver a beneficial outcome under current market conditions and had real potential to adversely impact the competition that benefits consumers.
The ACMA’s position is that renewing the licences avoids service disruption for the millions of customers who rely on these mobile networks, supports competition and consumer choice, and maximises the ability of operators to deliver new technologies like 6G and low earth orbit satellite services that will improve connectivity in regional, rural and remote Australia.
“Auctions are most effective when dealing with unused spectrum or where they can help new players enter the market and improve consumer outcomes. We have conducted extensive public consultations since May 2023 and have seen no evidence that a new entrant into the national mobile market is likely,” Ms O’Loughlin said.
The ACMA’s views also include a planned transition for certain metropolitan rail networks and television production services to new licensing arrangements. The arrangements will support existing services to continue uninterrupted but recognise that further consultation and work is required to determine the long-term use of the bands in question as these services transition to new technologies.
“We need to make sure we get the right mix of spectrum, technology, services and regulatory flexibility to ensure that this important asset is delivering long-term public benefits for Australians,” Ms O’Loughlin said.
Licensees will still need to apply and have their applications decided on individually, a process that will take place from mid-2026 through to 2030. We have launched a consultation on how this application process will work alongside the consultation on updated pricing methodology.
The ACMA’s preferred views on the expiring spectrum licences and responses to submissions is available on the ACMA website. Views on the ACMA’s updated pricing methodology and application process can be lodged until 27 February 2026.
