And the market will do what.
If there was money to be made in providing high quality wireless communications to remote areas, I suspect the market would have already done it. I somehow doubt any supplier, on there own will be altruistic enough to invest significantly, for effectively little return. How this auction will help, I can't see, no matter how cheap the licences are.
Corporations are very good at bending public service obligations, finding reasons why not, or even saying, ok fine us, it's cheaper. Taking away a licence is a hollow threat, because just think how the customer base would react to the politicians suggesting it.
The only way high quality rural communications will work, is by the communities part funding it. This is basically what happened with the Railways, sure many failed and were subsumed by larger companies, but the infrastructure remained and provided service. Luckily the government has already funded the expensive bit of the landline network, so actually communities funding their own infrastructure won't be that expensive. Some more entrepreneurial businesses already have, but they won't be able to afford spectrum licences. Another approach might be to treat these frequencies in the same way Taxi and PSV radio licences are sold, to allow those rural SMEs to build the networks. I suspect however the treasury are looking for some big bucks in short order.