Defining moment: Our upcoming lowband spectrum auction

Defining moments come in many forms, and our Minister for Communications, Urban Infrastructure, Cities and the Arts, the Hon Paul Fletcher MP, stands on the cusp of one of the most critically important decisions facing Australia’s communications landscape with important implications for our broader economy. 

Later this year, the Government will conduct an auction of a rare and valuable national asset, lowband spectrum.  Spectrum is the invisible pipes in the air that carry calls, data and content between the mobile towers and customers – it is critical to the delivery of mobile services. Lowband spectrum is particularly important in regional areas as it provides the widest coverage for mobile signals.

But lowband spectrum is a scarce resource and currently there is a real imbalance in the amount each operator has. Telstra holds more than three times the lowband spectrum of  Optus and double that of TPG.

With appropriate rules, the upcoming auction can allow all operators to acquire more spectrum and create a more level playing field, supporting competition and better outcomes for all Australians, particularly those in regional Australia.

The Government has taken the weight of its responsibility seriously and is proposing to set limits to ensure that all mobile operators can purchase enough spectrum to meet their current and future needs.

These limits are  not about excluding any party from participating in the auction process; it is about ensuring there is a fair-go and supporting the opportunity for competition and choice in regional areas, which benefits all customers. It will also help ensure that regional Australia can fully participate in the benefits of our digital future supported by a robust and competitive communications sector.

We should all value competition and choice; Competition keeps companies honest and helps to deliver better services, increased levels of innovation and lower prices. Who wouldn’t support that?

Well, it seems our main competitor does not.

It is disappointing to read misleading claims form Telstra that the Government’s proposed auction rules will place regional consumers at a disadvantage when the opposite is true.

Not limiting the amount of spectrum that a single carrier can buy could deny the millions of regional customers who value choice and competition continued access to high quality voice and data services in the future.

Protecting the competitive process is part of the Australian way – that’s why we have salary caps in the AFL and the NRL. And that’s why we have caps on the amount of spectrum any one mobile operator can buy – an approach taken in all past spectrum auctions.

It’s also a position recommended by the independent regulator, whose duty it is to pursue the best outcomes for Australian consumers and businesses – an  important responsibility that should be taken seriously.

Optus has a deep commitment to ensuring regional Australia has a choice, competitive prices and improved mobile coverage. We’ve demonstrated this through our actions, our investments and our desire to obtain the spectrum that will provide Australia’s regional businesses and consumers the services they need.

Optus says Yes to competition and choice and that’s why we support the Government’s proposals as delivering the best outcome for regional Australia.

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