Australia's Government Says Spectrum License Renewal To Raise A$3.0 Billion

Australia's government expects to reap A$3.0 billion over a four year period from a new agreement with mobile phone and wireless companies over the renewal of spectrum licenses.

Under the deal the communications regulator will be able to reissue licenses to existing license holders including Telstra Corp. (TLS.AU), Singapore Telecommunications Ltd.'s (SGAPY) unit Optus, Vodafone Group PLC (VOD) and vividwireless.

"I have carefully considered input from all interested stakeholders and have made a final pricing direction on the value of this spectrum," Communications Minister Stephen Conroy said in a statement. "The prices in the direction draw on economic analysis, discussion with industry and public consultation, and reflect the value of each band of spectrum," Conroy said.

The cash will be a boost to government revenues and will likely assist the minority Labor government deliver a promised budget surplus in 2012-2013 even as the wider economy shows signs of slowing.

-By Enda Curran, Dow Jones Newswires; 61-2-8272-4687; [e-mail]