Independent economic think tank Prosper Australia has slammed threats from Elon Musk’s SpaceX to withhold satellite-based mobile services from Australia unless it is handed valuable public spectrum access for free.
“Let’s be clear: Australia’s airwaves are a public resource, not a bargaining chip for billionaires,” said Rayna Fahey, Executive Director at Prosper Australia. “If SpaceX wants to operate here, it must play by the same rules as everyone else.”
SpaceX has argued that being required to participate in a competitive spectrum auction would increase costs or prevent it from deploying services altogether. But Prosper Australia says this is a familiar tactic: privatise the gains, socialise the costs.
“This is corporate brinkmanship, plain and simple. The spectrum is finite and immensely valuable. Allocating it through a transparent process ensures it serves the public interest, not just the profit margins of a single multinational.”
The federal government, through the Universal Outdoor Mobile Obligation, is seeking to expand mobile coverage across Australia using emerging satellite technologies. Prosper Australia supports this goal, but not at the expense of giving away public assets.
“If SpaceX walks away because it has to pay a fair price, that tells you everything you need to know about its business model,” Ms Fahey said. “Plenty of companies will be willing to invest and compete without demanding special treatment, especially in the future.”
Prosper Australia also rejected claims that auctions necessarily lead to higher consumer prices.
“Prices are shaped by competition and regulation, not just input costs. The real risk to Australians is allowing a single provider to dominate access to critical infrastructure without paying its fair share.”
The organisation emphasised that public resources — whether land, minerals, or spectrum — should deliver a return to the community.
“This is the commons. It isn’t Musk’s to take for free,” Ms Fahey said. “Australians shouldn’t be subsidising private risk-taking by some of the wealthiest corporations on earth.”
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The spectrum refers to the range of electromagnetic waves, including radio waves, that enable all wireless technologies, from mobile phones, Wi-Fi and Bluetooth devices to aircraft navigation, satellite and military applications.
