Lack of easy, timely access to affordable spectrum will limit how much the telecommunications sector can expand network capacity to accommodate Australia's growing data demand. It will also stifle competition in the telecommunications market. The volume of Australian data download traffic grew 38% between 2019 and 2020. Even if this reflects the exceptional demand driven by the pandemic, such growth rates are not unusual.76
" To cope with such a huge increase in data volume, Australia needs an assured and long-term pipeline for radio spectrum, the raw material for mobile communications. "
To cope with such a huge increase in data volume, Australia needs an assured and long-term pipeline for radio spectrum, the raw material for mobile communications. As a natural, finite resource, spectrum is becoming scarcer and more in demand.
The Australian Mobile Telecommunications Association (AMTA) estimates that, after current auctions of high-frequency mmWave spectrum end, all mobile operators will still need more of each spectrum band.77
In December 2020, the Australian Parliament passed the Radiocommunications Legislation Amendment (Reform and Modernisation) Act 2020 (Cth), which provides expanded decision-making powers for ACMA to support more efficient and effective spectrum allocation. The reform provides ACMA with greater flexibility to develop spectrum allocation arrangements so it can bring spectrum to market within shorter timeframes.
The telecommunications industry needs a long-term pipeline for new spectrum. ACMA should ensure operators are provided with a roadmap for spectrum availability, along with the flexibility and sustainable pricing needed to deliver 5G networks to the vast majority of Australians.