Telstra has warned the federal government that a proposed $7.3 billion spectrum licence renewal bill could face a Federal Court challenge, escalating tensions ahead of a critical telecommunications pricing decision expected this week.

The Australian Communications and Media Authority (ACMA) is preparing to finalise fees for renewing mobile spectrum licences used by Telstra, Optus, TPG Telecom and NBN Co between 2028 and 2032. The spectrum under review supports around 80% of Australia’s 30 million mobile services.

Under the latest proposal, the industry would collectively pay $7.3 billion, with Telstra facing the largest share at $2.8 billion.

In confidential submissions to government, Telstra accused the ACMA’s valuation model of relying on “incomplete and incorrect data” and warned the pricing approach could be “legally unreasonable” and vulnerable to judicial review.

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The telco argues spectrum values have been declining globally and claims the proposed fees would divert investment away from next-generation technologies including 6G and satellite-to-mobile services. Telstra estimates the licences are worth closer to $3.3 billion overall.

Other carriers have also raised concerns. TPG Telecom chief executive Inaki Berroeta warned excessive spectrum costs could reduce industry investment and weaken competition, while Optus said higher fees would limit spending on network resilience, security and coverage.

The ACMA defended its process, saying the pricing model was based on extensive consultation and independent economic review.

The regulator said a final decision on spectrum pricing would be released “imminently.”