We've made our case to the Federal Government ahead of the 2026-27 Budget. Here's what we're asking for, and why it matters to anyone who relies on a mobile network.
Australia's digital economy doesn't run on goodwill. It runs on spectrum - the invisible radio frequencies that carry every call, message and mobile data session. And right now, prices being proposed by the Australian Communications and Media Authority (ACMA) for renewal of expiring spectrum licenses could lead to difficult trade-offs between the investments we make in connectivity, the services we offer, and the prices we charge. Ahead of the 2026-27 Budget, we've laid out our concerns to the Federal Government. Here's what we're asking for and why we think it matters.
In a period of accelerating technological change and shifting global dynamics, our digital economy is a big driver of national productivity, competitiveness and growth. But it can only be as strong as the networks that support it.
Building the networks that power our digital economy takes big investment. That's why, over the seven years to the end of FY25, Telstra alone invested $12.4 billion in our mobile network nationally - with $4.7 billion of that going into regional Australia specifically.
Investment at that scale only happens when the industry is making adequate financial returns, supported by regulatory and policy settings that make that viable.
Almost all Australians rely on digital devices for organising our lives, running businesses, getting qualifications or staying connected. Connectivity is so fundamental to our lives and our economy that the telco sector added $47 billion in value to the Australian economy in 2023 alone.
Spectrum is the most critical input for the delivery of mobile services. Certainty of spectrum allocation enables mobile network operators to keep investing in their networks and improving services. While we'll need additional spectrum over time to meet growing demand, what matters most right now is retaining our existing spectrum holdings to serve current customers without disruption.
The ACMA is currently consulting on the renewal of a series of expiring spectrum licences - the licences that underpin most of mobile services Australians use today. Their recently revised pricing proposal is, according to independent analysis commissioned by Telstra, more than double the fair market value of the spectrum. It's also substantially higher than the ACMA's own previous price guide.
Telstra supports paying a fair price for spectrum. What we can't support is a pricing proposal that's dramatically above global norms and directly at odds with the Government's own productivity agenda and focus on reducing cost-of-living pressures.
To put the numbers in plain terms: the ACMA's preferred position would cost the industry an additional $4.1 billion above fair market value - with $1.6 billion of that falling on Telstra alone. For context, $1.6 billion is roughly equivalent to:
Australia has a competitive mobile market that is delivering for consumers. Despite our genuinely challenging geography and size, our networks are world-class.
ACMA’s proposed pricing is out of step with how other countries are approaching spectrum. Around the world, spectrum prices have been falling.
In the UK, Ofcom ran a similar process in 2025 and landed on prices that are around 60% lower for low-band spectrum and 30% to 40% lower for mid-band spectrum than what the ACMA is currently proposing.
$4.1 billion in additional costs can't simply be absorbed by the industry.
Over the past decade, Australia’s telco industry has delivered customers better services at lower real prices. The ACMA's preferred approach puts that track record at risk. It would add huge additional costs and conflict with the Government’s focus on boosting productivity and addressing cost-of-living pressures.
Continued investment is critical to unlocking productivity growth from new technology. We know that fair spectrum prices encourage investment in high-quality networks.
Analysis of over 230 operators globally shows that higher spectrum prices materially undermine the productivity enabling performance of mobile networks. For example, a 10% higher spectrum cost reduced download speeds by ~8% and reduced 5G coverage by 6%.
Telstra supports paying fair and equitable prices for spectrum. That would give all mobile network operators the certainty and capacity to keep investing in better, more resilient networks for Australian consumers and businesses.
In practical terms, that means a renewal price of around $3.3 billion for the industry in total - not the $7.4 billion the ACMA currently prefers. For Telstra specifically, that means around $1.2 billion to renew our expiring licences, rather than the $2.8 billion on the table.
Get it right, and we can keep building the networks Australia needs. Get it wrong, and the costs - to investment, to coverage, and ultimately to consumers - will be real.
