The Communications Minister has directed the ACMA to implement a limit of 1GHz per operator in the next 5G auction.
An auction for the development of wireless broadband: Back in October 2019, the Australian government set out its objectives for the allocation of spectrum in the 26GHz band. These included supporting the deployment of 5G technologies, while promoting competitive market outcomes and ensuring co-existence with existing services (including the NBN’s Sky Muster satellite service). The Government also wanted to support a range of wireless broadband use cases, and to encourage investment in infrastructure at the regional level.
No more than 1GHz per operator: On 13 August 2020, the Minister of Communications announced they had directed the Australian Communications and Media Authority (ACMA) to set a cap of 1GHz per operator in the 25.1–27.5GHz band, in each designated area. The direction follows the recommendation of the competition authority, the ACCC, which concluded that without a cap there would be a risk of monopolisation and asymmetric holdings in the high-band spectrum after the auction. In May 2020, the ACCC aimed to ensure that no operator has a competitive advantage over others in the future, due to the nascent nature of some relevant markets for this spectrum. The authority noted that, internationally, many regulators are delaying the allocation of high-band spectrum or issuing shorter, temporary licences, in recognition that the equipment and device ecosystem, and end-user demand is still lagging for high-band spectrum.
The limit could be reviewed: The 1GHz limit was set under the assumption that the country’s three main MNOs would be the only bidders in the auction. The ACCC notes that limits should be reevaluated in the event that anyone other than the MNOs decide to participate, or if there are more than three bidders, although this is seen as an unlikely circumstance. The auction is scheduled to take place in March 2021.
