Govt sets spectrum auction limits

9 Feb 2012, 6:56 pm   -   Source: AAP
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The federal government wants to ensure a level playing field for an upcoming auction of spectrum to support mobile devices.

The federal government has taken steps to ensure no single telecommunication company will have an unfair advantage in an upcoming auction of spectrum for mobile device providers.

Communications Minister Stephen Conroy has directed the telecommunications watchdog, the Australian Communications and Media Authority (ACMA), to place limits on the amount of spectrum due to be sold to individual companies in late 2012.

Companies will be restricted to a limit of 2x20MHz in the 700MHz band, and 2x40MHz in the 2.5GHz band.

The limits have been set to ensure a level playing field for the three main bidders - Telstra, Optus and Vodafone Hutchison Australia - to take part in the auction without excluding a potential new competitor.

"These limits are designed to ensure there is a choice of providers in the mobile sector for the advanced services that will be provided over the digital dividend spectrum," Senator Conroy said in a statement on Thursday.

"This is a good outcome for Australian consumers."

All participants can bid on the optimal amount of spectrum in both bands under the proposed limits.

"Industry has been seeking certainty on this issue in the lead-up to the digital dividend auction and I am pleased to be able to provide that certainty well in advance of the auction taking place," the senator said.

Senator Conroy took the steps after receiving advice from competition regulator, the Australian Competition and Consumer Commission (ACCC).

Both signal bands have been designated for the fourth-generation devices such as smartphones, tablets and computers.

The 700MHz spectrum is being offered as the country prepares to switch over from analog television signals to digital.

It's deemed the best available for mobile devices because the signal is better at penetrating buildings, while the 2.5GHz band is more efficient for high-speed traffic.

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