Telcos may save up to $3.2 billion if not forced to bid for spectrum at auction

ABC NEWS (Australia)

The treasury's coffers and therefore taxpayers could miss out on billions of dollars in revenue if the communications regulator goes ahead with its plan to scrap spectrum auctions. The Australian communications and media authority is proposing to roll over existing contracts making it cheaper for companies including Telstra and Optus to use the public airwaves.

Transcript

00:00The airwaves that support our calls, our work, our lives are worth billions of dollars.

00:09But the regulator doesn't want to hold new auctions for what's known as Spectrum.

00:14Instead, it's proposing to roll over current licences, giving Telstra, Optus and others

00:21cut-price ongoing access to public airwaves.

00:24It's hard to know why they would do that and certainly not in the interest of the Australian taxpayer.

00:2969 expiring Spectrum licences were bought for $8.2 billion.

00:35But the Australian Communications and Media Authority, ACMA, wants to roll them over to the existing holders

00:41for between $5 and $6.2 billion.

00:45Well, taxpayers will be losing between $2 and $3.2 billion.

00:50That's shortchanging Australian consumers.

00:53ACAN commissioned Professor Richard Holden to analyse ACMA's proposal.

00:58Why don't we just run an auction and find out what we get?

01:01And if we get $5 billion, then fair enough.

01:03But if we get $10 billion or $12 billion, then that'll be better for the taxpayer.

01:08The regulator says rolling the contracts over is the best option.

01:12Spectrum is a public asset for which industry should pay a fair price and from which consumers

01:18should gain maximum benefit.

01:21Existing players say no matter what happens, the cost is passed on.

01:25There's a direct relationship between the price that's paid for Spectrum

01:29and ultimately the price that consumers pay for their services.

01:33The thing about auctions is you never know who might turn up.

01:36By rolling over the licences, we're locking in incumbents and locking out potential competitors

01:41and new technologies.

01:43How long do we get?

01:44The Amazon �us and the valuation?

01:45Let's go to the real table.

01:46We want to pay for the water.

01:47Let's have our new plug-in service.

01:48I'm really sorry.

01:49Up next to this!

01:50We'll catch the legal communications.

01:51How long did we get the hitches?

01:53We'll catch up on the net.

01:54We'll catch it next time.

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