Industry bucks at licence fee increases

The Australian Radio Industry Communications Association (ARCIA) has expressed its strong opposition to an ACMA proposal to increase 400 MHz licence fees by 15%.

In a detailed, 10-page paper available on the ARCIA website, the organisation sets out its responses to the Opportunity Cost Pricing proposal.

In 2012, the ACMA commissioned an independent consultant to review the value of the 400 MHz band, which is the spectrum area in which most Australian two-way radio operates.

After comparing spectrum taxes in Australia with those of other countries, the consultant recommended that the value being charged in Australia was not in line with other countries and that it should be increased.

The ACMA decided it would implement an increase in a series of five increments of 15% which, with compounding costs, would end up doubling the rate at the end of five years.

ARCIA argued that the rate set was from areas that were not comparable to Australia; however, the ACMA pushed ahead with the proposal in 2014.

Late in 2015, the ACMA put forward a discussion paper that showed there was still the need for increases and proposed the second 15% increase from April 2017.

Even though ARCIA raised serious concerns regarding the calculations, the ACMA proceeded with the cost increase in April 2016.

The ACMA is now proposing to impose a further 15% increase in April 2017.

ARCIA has written to the Minister for Communications, with copies sent to the Department of Communications Management and also the chairman of the ACMA, pointing out that the underlying factors used to justify the increase are not necessarily correct and that there is not enough transparency in the proposal.

The ACMA document and other presentations have indicated that, “as there is no evidence of a stalling in licence demand”, the increase is justified.

According to ARCIA, this effectively means that until the ACMA sees licence demand drop it will continue increasing costs, regardless of the fact that a “stalling of demand” translates to a significant drop in equipment sales and the potential for businesses to close.

ARCIA has issued a call to everyone in the industry to make themselves aware of this situation and get involved.

Image courtesy NIST