Australia to remove 2-GHz spectrum cap

1 min readUpdated Jun 4, 2025Sep 7, 20172:24 AM

In this article (5)

The Australian government has announced plans to remove the current cap on spectrum holdings in the 2-GHz band to allow all operators to bid for leftover spectrum from previous actions.

But the government, acting on the advice of competition regulator ACCC, has elected to retain the current allocation limits in the 1800-MHz band.

Meanwhile there will continue to be no allocation limits on holdings in the 2.3-GHz and 3.4-GHz bands, communications minister Mitch Fifield announced.

The government plans to hold a multiband residual lots auction late this year, and has decided to hold a single auction process for all four bands rather than several smaller auctions.

Telecoms regulator ACMA will conduct the auction on behalf of the government.

The government has meanwhile proposed a new spectrum management reform that will replace current legislative arrangements with new legislation that seeks to streamline licensing for a simpler and more flexible framework.

Under the proposed reforms, spectrum pricing will be reviewed to “ensure consistent and transparent arrangements to support the efficient use of spectrum and secondary markets.”

The draft law is currently undergoing a second round of consultation before it is finalized and sent to parliament.

AdvertisementAdvertise with usMobile 320×100

What this means

This strategic move by the Australian government creates a competitive scramble for valuable spectrum, especially in the 2-GHz band where previous caps are lifted, while retaining limits in the 1800-MHz band. This contrasts with earlier cautious approaches seen in Asian markets for critical infrastructure allocations. The integrated multiband auction simplifies the process but pressures operators to make significant capital commitments for network expansion and 5G deployment. It mirrors the strategic consolidation efforts seen in other markets. The proposed spectrum management reform, with its focus on streamlined licensing and transparent pricing, aims for long-term efficiency but could also introduce new cost structures. The immediate impact on operators' capital expenditure and market share will become clearer after the single auction process concludes later this year.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

Why has the government decided to remove the cap on 2-GHz spectrum holdings?

The government aims to allow all operators to bid for leftover spectrum from previous actions by removing the current cap. This measure intends to promote greater competition and efficient use of the available spectrum.

Which specific spectrum bands will have no allocation limits under the new plan?

There will continue to be no allocation limits on holdings in the 2.3-GHz and 3.4-GHz bands. This approach contrasts with the retained limits in the 1800-MHz band.

What is the government's approach to the upcoming spectrum auctions?

The government plans to hold a single multiband residual lots auction late this year. This consolidates bidding across all four bands into one process, rather than conducting several smaller auctions.

How will the proposed spectrum management reforms affect spectrum pricing?

Under the proposed reforms, spectrum pricing will be reviewed. The goal is to ensure consistent and transparent arrangements, supporting the efficient use of spectrum and facilitating secondary markets for its trade.

Reader pulse

Is lifting the 2-GHz spectrum cap a smart move for Australian telecom?

20,859 votes so far