Australian telcos pay A$3bln for licence renewals-media

CANBERRA Feb 10 (Reuters) - Australia's biggest mobile phone companies have reached a A$3 billion ($3.2 billion) deal with the government over licence renewals, clearing the way for the auction of new spectrum for next generation services, a newspaper reported on Friday.

The Australian Financial Review said Telstra Corp and Vodafone could need to raise about A$1 billion over the next 16 months to keep the most valuable spectrum, the 800 megahertz band, which is less than the A$1.4 billion valuation issued by the government late last year.

The companies had objected to the government's original valuation, putting the future of mobile phone services at risk for millions of customers, the paper said.

"This strikes the right balance given the need for stability," the paper quoted an unidentified person familiar with the outcome as saying, adding the government would set a July 2013 deadline for the first payments.

Communications Minister Stephen Conroy's office said a determination on the spectrum renewals was likely later on Friday but a spokesman would not comment on the newspaper report.

Conroy announced on Thursday a competition limit for the auction of new spectrum to ensure all mobile providers will have access to the spectrum, which will allow the launch of next generation services for mobile devices.

The Financial Review said industry experts expect the auction in November could raise about A$4 billion for the government.