NBN Co Asks ACMA for Spectrum Licence Discount

NBN Co has requested a discount on its expiring spectrum licences for fixed wireless services. The Australian Communications and Media Authority set the renewal cost at $7.32 billion. NBN Co argues that market pricing does not reflect its loss-making operations.

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NBN Co's Request for Discount

NBN Co has appealed to the Australian Communications and Media Authority (ACMA) for a discount on its expiring spectrum licences for fixed wireless services.

This request comes as the company faces a sizable spectrum renewal bill due in mid-2031.

Last week, ACMA announced its final price ruling, determining the total cost for mobile network operators and NBN Co at $7.32 billion, slightly lower than the preliminary figure of $7.34 billion provided last December.

In submissions released after the ruling, it was disclosed that NBN Co is seeking a reduced fee to continue utilizing the 2.3GHz and 3.6GHz bands essential for delivering fixed wireless broadband.

The company argues that its fixed wireless network operates at a loss while serving the public interest, and that the spectrum in question does not offer a more valuable return to consumers.

NBN Co acknowledged ACMA's decision to use pricing benchmarks to foster optimal long-term use of the spectrum.

However, the network operator pointed out that public interest discounts have traditionally been a matter of ministerial discretion rather than regulatory authority.

NBN Co stated, "However, the proposal to apply benchmarks-derived market pricing does not adequately reflect NBN Co's loss-making and mandated use case and results in a price for our [expiring licenses] that is not a fair price."

The company further emphasized that no economically rational operator would agree to pay market prices for renewing licences, only to incur losses while providing services under the terms required for their fixed wireless product.

NBN Co also noted a contradiction in ACMA's reasoning, stating that while the authority recognizes there is no better use for the spectrum than delivering fixed wireless broadband to regional areas, it simultaneously relies on market pricing to encourage efficient use.

NBN Co concluded, "These two principles do not hold together in proposing to use market pricing for NBN Co [spectrum licences] which are required as a result of our mandated operations."