The Australian Communications and Media Authority is proposing renewing spectrum licences for up to $3.2 billion less than they were initially purchased.
Critics argue an auction would provide a better return for taxpayers, with consumer advocates saying a renewal would entrench dominant telcos.
The government says ACMA is still consulting stakeholders on the future of spectrum licences.
69 expiring spectrum licences were bought for $8.2 billion, and ACMA is proposing to renew them for between $5 billion and $6.2 billion.
Spectrum refers to radiofrequency spectrum, occupied by different frequencies used for everything from broadcasting and mobile services through to maritime radionavigation and satellites, and its use is managed by ACMA.
Consumers should be furious, according to Carol Bennett, the chief executive of the Australian Communications Consumer Action Network (ACCAN) as companies including Telstra and Optus will be given cut-price rates.
The peak body for the mobile industry is the Australian Mobile Telecommunications Association (AMTA) and its submission is clear that the process of renewing the licences should "ensure the continuity" of existing players.
AMTA chief executive Louise Hyland says it is simple: whether licences go in an auction or a rollover, the cost is passed on to consumers.
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