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 – with 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.