Government to review spectrum auctions

The Productivity Commission will review the process of auctioning telecommunications spectrum after the failed datacasting auction held earlier this year.

Assistant Treasurer Rod Kemp said the inquiry into the Australian Communications Authority's (ACA) market-based activities was part of a scheduled examination of all government laws.

"The broad purpose of the review is to identify restrictions on competition arising from spectrum management rules and processes," Senator Kemp said.

The announcement comes after the Government was forced to cancel the datacasting auction due to lack of interest, and received less than half its Budget forecast for third-generation mobile phone spectrum.

An issues paper will be released soon and all interested parties will be invited to make submissions.

The terms of reference give the Productivity Commission 12 months to report back to the Government on spectrum management procedures under National Competition Policy, and any recommendations for change.

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