The Federal Budget’s physical infrastructure centrepiece has served to throw the agenda forward to the importance of spectrum as a key productivity driver in getting the economy back on to a sustainable growth path, AMTA Chief Executive Officer, Chris Althaus, said today.

Treasurer Wayne Swan described the Government’s $22 billion infrastructure program as the centerpiece of this week’s 2009-10 Budget.

Mr Althaus said increasing the nation’s productive capacity is an important task in improving our efficiency.

“If roads and railways were the critical infrastructure of the 1930s during the Great Depression, then radiofrequency spectrum and the technology it supports are a wellspring on economic growth in 2009 and part of ‘nation-building’ infrastructure to lift the economy back onto a solid growth path,” he said.

“Radiofrequency spectrum is the electromagnetic energy infrastructure highway that carries mobile services – without it, service is not possible. What’s more, the type and amount of radiofrequency highway made available for mobile telecommunications will influence performance and service levels.”

Mobile broadband is an enabling technology that drives productivity across the entire economy. Mobile broadband has the ability to streamline business processes and reduce costs while increasing the productivity of workers, who are no longer constrained to a fixed work environment.

Access Economics last year calculated that the mobile industry’s spillover benefits for the economy were greater than its direct contribution and, by 2010, the increased uptake of 3G and consequent increase in mobile data traffic would contribute $2.1 billion in additional GDP.

The mobile industry is one of consistent growth and will contribute to Australia’s recovery from the economic downturn. The industry is poised to continue investing in next generation networks that will drive Australia’s productivity and boost growth, but only if there is a degree of certainty about the availability of key spectrum allocations.

Mr Althaus said: “The Australian Government currently faces several key decisions on its approach to spectrum management.

”Mobile operators need certainty about retention of their existing spectrum allocations, access to the 2.6GHz band and at least 120MHz of useable spectrum from the “Digital Dividend” so Australia can meet and benefit from the rapid surge in demand for mobile broadband services.

“A new report by a leading consultant says economic benefits for the Australian community would be maximised if the so-called “Digital Dividend” from the switch-off of analogue television in 2013 is used for a combination of mobile broadband and broadcasting services.”

Economic consultancy, Spectrum Value Partners (SVP) in association with Venture Consulting, has undertaken economic modelling for AMTA to find the best policy option among alternative uses of mobile and broadcasting services from the radiofrequency spectrum that will become available when older-style (analogue) TV services are switched off in 2013.

The report says that under a range of supply and demand scenarios for mobile and broadcast services the national net economic benefit would be boosted by up to $10 billion if at least 120MHz of useable UHF spectrum is allocated to mobile telecommunications.

Mr Althaus said an efficient, fair and well-balanced reallocation of spectrum shared between mobile telecommunications and broadcasting industries would ensure that Australia reaps the full economic and social benefits from the Digital Dividend.

The Digital Dividend provides a once-in-a-generation opportunity for a significant reallocation of spectrum as part of the provision of national infrastructure, which will be critical in addressing future growth needs and enhancing Australia’s full participation in the digital economy.

Mr Althaus said: “One of the other key spectrum management issues facing industry is the process that will be adopted for the reissue of 15-year spectrum licences, which are due to expire from 2013.

“AMTA recommends that the process for making a determination be completed well in advance of 2013.

“The mobile telecommunications industry needs investment certainty and is increasingly concerned about delays on a decision about spectrum licence reissue, bearing in mind that in the next 12 months Australia moves into a pre-election period.

“With uncertainty around current licenses, it’s not surprising the industry is concerned. The last thing governments would want to do is inject uncertainty in a sector with such a key role to play in challenging economic times.”