Draft ministerial direction on unsold 700 MHz spectrum

The consultation period has been extended by one week and will now close on 10 June 2016.

700 MHz spectrum is highly valued for 4G LTE mobile broadband services due to its technical characteristics and international compatibility. 700 MHz spectrum is available under nationwide spectrum licences and forms a key element of a national mobile broadband network.

In 2013, the Australian Communications and Media Authority (ACMA) held a digital dividend spectrum auction to reallocate spectrum in the 700 MHz that had been vacated by analogue television transmission services. The reserve price for the 700 MHz lots in the auction was $1.36/MHz/pop. In that 2013 auction, Telstra purchased 2 x 20 MHz of 700 MHz spectrum and Optus purchased 2 x 10 MHz of 700 MHz spectrum. 2 x 15 MHz of 700 MHz spectrum remained unsold.

The Australian Government has received a formal proposal from Vodafone Hutchison Australia (VHA) to acquire 2 x 10 MHz of this spectrum. We invited written submissions on a draft ministerial direction to the ACMA to implement the details of VHA’s proposal. The consultation note explains the draft ministerial direction.