OZ Spectrum War Looms Smartphone Costs Could Rise

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Smartphone carriers, who are already set to come under margin pressure next year as Android Smartphone’s proliferate and prices fall, are set to be forced by the Federal Government to bid billions for new spectrum that will see the introduction of new spectrum and 4G Smartphone’s in 2013.

Smartphone carriers, who are already set to come under margin pressure next year as Android Smartphone’s proliferate and prices fall, are set to be forced by the Federal Government to bid billions for new spectrum that will see the introduction of new spectrum and 4G Smartphone’s in 2013.

Telstra, Optus and Vodafone will have to bid at a public Auction for the spectrum or face being cut out of the fast growing mobile market.

According to Federal Government officials the Labor Government is expecting a “significant” increase in fees from the $3 Billion paid by carriers in 2000 for mobile spectrum when the bidding process is put into place in May 2011.
The introduction of 4G services will see TV stations and their digital channels moved onto a new frequency, which will allow for the introduction of new digital channels, a move that is set to hurt Foxtel who are already under pressure from recently introduced free to air channels.

The Federal Government also plans to auction 700Hz spectrum in 2012.

The auction of spectrum is will not go down without a fight with the Australian Mobile Telecommunication Association commissioning research that already warns against setting a high price for spectrum.

They claim that a high license fee would make it harder for the networks to invest in new services however they are keen for the auction to go ahead quickly so that carriers can plan their future.

 

The Federal Government has already called for a full analysis of carrier’s financials in an effort to identify how many subscribers they have, data and voice revenues while Treasury has urged that the Government does not “throw away” spectrum.

Last month several research Companies said that carriers were set to come under margin pressure as several vendors launch new Smartphone’s based on the same Google Android operating system.

See original story here.

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