Ahead of a proposed auction of spectrum licenses covering segments of the 1800 MHz band in regional Australia later in the year, the Australian Competition and Consumer Commission (ACCC) is assessing whether competition limits should be imposed.The 1800 MHz band is highly sought after for 4G and mobile broadband services, the ACCC noted, with the Department of Communications having requested the ACCC provide advice on potential competition limits for the proposed auction.
The ACCC has been asked to consider the current state of competition for mobile broadband services in regional Australia, and the effect that competition limits may have upon competition in downstream markets, along with other matters it considers relevant.
In a letter inviting comment, the ACCC notes competition limits have been imposed on spectrum auctions in the past, including the recent digital dividend auction, with the principle reason for introducing limits being to prevent monopolisation of the spectrum.
The proposed auction, to be conducted by the Australian Media and Communications Authority, is slated to take place in November.
“The ACCC welcomes stakeholder views on whether competition limits should be imposed in the spectrum auction,” commented ACCC chairman Rod Sims.
“Stakeholder submissions will help us to understand the need for, and implications of, placing limits on the spectrum that may be allocated. They will also inform our views on whether competition limits would promote competition in mobile broadband markets.”
The ACCC letter inviting comment can be found here.
