Vivid’s wireless windfall

Senator Stephen Conroy’s undertaking on the pricing of wireless spectrum renewals seems to offer a very favourable deal to Vividwireless. What’s going on?

This week Twisted Wire looks at how the government is determining the price carriers pay to renew their existing wireless spectrum. The telcos aren’t ready to talk about how much they’re being charged, but there seems to be a general belief that the price proposed by the government is too high.

In an undertaking from Conroy, access charges have been set at $1.46 per megahertz per population for 800MHz, 62.5 cents for 2GHz, but just 3 cents for 2.3GHz and 3.4GHz. Those last two frequencies are being used by two players — NBN and Vividwireless.

The prices are supposedly the result of analysis by UK firm Plum Consulting. So, does its methodology help to explain the enormous differential in pricing? I ask two analysts — Chris Coughlan from Telsyte and Mark McDonnell from BBY Limited.

What do you think? Why is Vivid getting such a good deal? Leave a message below or call the Twisted Wire feedback line on (02) 9304 5198.

NBN Telstra, Optus, Vodafone, ACMA, Vividwireless and the Department of Broadband, Communications and the Digital Economy, and the Plum Consultancy were all invited to take part in this program.

First published on ZDNet

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