The Gillard government has resolved the row with the major telcos with regards to the renewal of spectrum licences, in a deal that will raise about $3 billion over the next four years.

The renewal agreement paves the way for the auction of additional wireless spectrum in November, which will enable the launch of 4G services and potentially add another $4 billion to the government coffers.

Federal communications minister Stephen Conroy said in a statement that the reissue of licences will provide certainty about the continuity and operation of mobile and wireless communication networks.

“This decision has involved a careful evaluation of how the public interest is served by allowing renewal of current licences, as well as identifying appropriate pricing for renewed spectrum,” Senator Conroy said.

The telcos had been in dispute with the government over the manner in which the new licence renewals fees had been calculated, with Telstra warning in its submission to the government that exorbitant licence-renewal fees for spectrum access could spell disaster for the development of mobile networks in Australia.

Telstra and Vodafone Hutchinson Australia were expected to pay a combined $1.4 billion for continued access to the mobile phone spectrum. However, both telcos are now expected to make the  first payment of about $1 billion by June 2013.