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Discussion Paper Released on OCP for 400MHz Spectrum.

The ACMA have just released a discussion paper on Opportunity Cost Pricing for the 400MHz spectrum, the most common area of licencing for land mobile radio equipment.

Although ARCIA have not yet had time to review the document the proposed impost of yet another 15% increase on licence fees shows no regard for the commercial sensitivities of our industry. At a time when more and more commercial contracts are being forced to only accommodate CPI increases, which are presently below 1.4%pa, the ACMA bludgeon another increase ten times above CPI onto our licence fees.

It would seem that until licences are cancelled, and the probability of industry businesses losing profitability becomes even higher, the ACMA will continue to ignore anything other than their own economic projections. ARCIA will be responding to this discussion paper and presenting the concerns of industry members.