From Defence to Offence

Research evidence excerpt

From Defence to Offence

Macquarie Equity Research Telstra

Spectrum update

ACMA released its finalised views on spectrum renewal pricing. Under the new pricing, it will

cost the industry A$7.32b to renew expiring spectrum licenses, ~A$20m lower than the A

$7.34b indicated in the prior round of pricing estimates in December 2025.

Following the December release, MNOs (Telstra (TLS), TPG Telecom (TPG), and Optus)

highlighted concerns that higher spectrum costs could impact investment, particularly in

regional coverage and next generation networks. Operators also advocated for lower pricing

outcomes and greater recognition of global spectrum valuation trends. However, ACMA has

broadly maintained its stance, reiterating a preference for market-based benchmarking and

noting that pricing outcomes are intended to reflect underlying market value. ACMA also

stated that pricing is applied consistently across licensees and is not expected to materially

alter underlying competitive dynamics.

On payment terms, while some submissions supported instalment structures (e.g., TPG),

ACMA has maintained upfront payments for spectrum access charges, with payments now

due ~2 months prior to licence expiry.

We outline the pricing changes below, noting that the exact financial impact will be driven by

portfolio mix across spectrum bands.

Figure 1 - ACMA spectrum renewal pricing

Preliminary Updated Finalised Increase / (decrease) License expiry Est. payment

Band

(Apr'25) (Dec'25) (May'26) from Dec'25 (%) date date

700 MHz 0.6055 - 0.7405 0.7405 0.6618 (11%) 31-Dec-29 31-Oct-29

850 MHz 0.6371 - 0.7791 0.7558 0.6703 (11%) 17-Jun-28 17-Apr-28

1800 MHz 0.1895 - 0.2356 0.3030 0.3646 20% 17-Jun-28 17-Apr-28

2 GHz 0.1583 - 0.1968 0.2757 0.3389 23% 11-Oct-32 11-Aug-32