Optus, Telstra and TPG big winners in digital spectrum sale

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Photo: Kainet/Flickr (Creative Commons)

Photo: Kainet/Flickr (Creative Commons)

The Australian Government has announced the winners of the digital dividend auction – with Optus, Telstra and TPG the big winners in a deal worth nearly $2 billion. The new spectrum, to be made available after the digital television transition is completed, will be used to deploy LTE.

Telstra has secured 2 x 20MHz blocks in the 700MHz band, and 2 x 40MHz blocks on the 2.5GHz band; while Optus has secured 2 x 10MHz blocks on the 700MHz band and 2 x 20MHz blocks on the 2.5GHz band. Both Optus and Telstra have confirmed that both will be used to assist in its 4G coverage Рwith the 700MHz band to help expand its rural and regional coverage and improve metro coverage.

TPG has acquired¬†2 x 10Mhz blocks on the 2.5GHz band – and will use it to help expand its wireless broadband market. In an ASX/Media release, “TPG believes that the 2.5GHz spectrum is a valuable asset which, with developing technologies, will bring TPG the opportunity to offer innovative and value-adding products to its customers”.

The Government was not able to sell another two 15MHz blocks on the 700Mhz band – worth $1 billion – and intend to keep them for another two or three years before selling them at auction.