Australia’s mobile carriers have warned of higher prices and slower network upgrades after the Australian Communications and Media Authority (ACMA) lifted its estimate of what telcos will have to pay to retain access to critical radio spectrum to $7.3 billion.

ACMA this week released its “preferred position” on how expiring spectrum licences should be renewed, covering frequencies that underpin more than 30 million mobile services nationwide.

Around 80% of existing mobile spectrum licences are due to expire between 2028 and 2032.

The decision will determine how much Telstra, Optus, TPG Telecom and NBN Co must pay to continue operating their networks.

ACMA’s revised valuation is well above its earlier estimate of $5 billion to $6.2 billion, though still below the $8.2 billion carriers paid for licences in the 2010s.

The regulator said the higher figure reflects changes to its pricing methodology and expanded international benchmarking, following a peer review by economics firm DotEcon.

Telcos have reacted angrily.

Telstra said the new figure was “a step in the wrong direction”, warning that higher spectrum costs would make it harder to invest in coverage, reliability and new services.

Optus said it was disappointed by the decision and stressed the importance of affordable pricing to support competition and network upgrades.

TPG Telecom cautioned against treating spectrum as a “cash cow”, arguing Australians would ultimately pay through higher mobile bills and slower improvements.

Consumer advocates, however, have welcomed the move.

The Australian Communications Consumer Action Network (ACCAN) said the revised valuation was a “material improvement” on ACMA’s initial proposal, following criticism that the regulator was favouring industry over consumers and taxpayers.

ACCAN chief executive Carol Bennett said spectrum was a scarce public resource and should be priced in the public interest, not handed to incumbents at a discount.

She also called for stronger licence conditions to ensure tangible consumer benefits, including better coverage, service quality and pricing, particularly in regional and underserved areas.

ACMA chair Nerida O’Loughlin defended the approach, saying renewing licences rather than auctioning them would avoid service disruption, support competition and give operators certainty to invest in future technologies such as 6G and low-earth orbit satellite services.

ACMA is now seeking a final round of industry and stakeholder feedback on its pricing methodology, with submissions open until late February 2026.