2018 OCP licence fee increase reviewed

ARCIA has announced that it has been successful in persuading the ACMA to review the 2018 increase in High Density area licence fees.

Several years ago, the ACMA decided to increase these annual licence fees by 15% per year over five years, with the aim of obtaining what it saw to be the real value of the spectrum used for LMR services. This scheme was known as opportunity cost pricing (OCP).

The 15% increases were applied in 2015 and 2016, despite ARCIA questioning the rationale on which the increases were based.

In late 2016, after the ACMA gave notice of the proposed third increase (which would have taken effect in April 2017), ARCIA provided sufficient information to raise real issues with the ACMA data. Further discussions and research supported the ARCIA position.

The result was that the 2017 increase was deferred, resulting in a saving for LMR licence holders approaching $500 per annum per licence in the High Density licence areas.

According to a statement on the ARCIA website, “As a result of ongoing discussions and investigations, the possibility of any further OCP licence fee increase in April 2018 has also been deferred. This will represent savings of over $500 p.a. per licence. These savings are a direct result of ARCIA challenging the ACMA data and being able to present information to the discussions based on real-world experience, proving that as an industry and an association we have good knowledge of how our spectrum is utilised.”

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