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Opportunity Cost Pricing in the 400MHz Band – Regulation Impact Statement – Australian Communications and Media Authority

On 3 August 2012, the Australian Communications and Media Authority (ACMA) announced an increase in apparatus licence taxes of the 400 MHz band from $99 per kHz of spectrum to $199 per kHz spectrum for high density areas of Brisbane, Melbourne and Sydney.  The ACMA’s analysis of the level of apparatus licence taxes indicates that the current taxes are approximately half of what a well functioning market would set for efficient use of the 400 MHz band. The “opportunity cost” pricing will be implemented by the ACMA over five years. A Regulation Impact Statement was prepared by the ACMA and has been assessed as adequate by the Office of Best Practice Regulation.