Leading telcos bid $853 million on 5G spectrum in Australia

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5G spectrum

Four of the leading telecommunication firms have spent around $853 million in 5G spectrum auction by Australian Communication and Media Authority (ACMA).

5G is a promising generation of cellular mobile communications, that will provide high data rate, reduced latency, energy saving, reduced cost, higher system capacity, and better device connectivity.

The 5G spectrum sold at the auction is recognized internationally as a ked band for 5G services, said Nerida O’Loughlin, Chair of ACMA. Timely release of 5G-compatible spectrum will facilitate the early delivery of next generation 5G to the Australian public and industry.

The four companies that won the auction, included Dense Air Australia Pty Ltd, Mobile JV Pty Ltd, Optus Mobile Pty Ltd, and Telstra Corporation Ltd. Mobile JV is a joint venture between TPG Telecom Limited (TPG) and Vodafone Hutchison Australia Pty Limited (VHA).

For the auction, total 350 lots of 3.6 GHz radio wave bands were up. These lots were worth approximately $853 million, which is around $0.29/MHz/pop.

Telstra Corporation won the most number of lots (143) for approx. $386 million. Following Telstra, Mobile JV won 131 lots for approx. $263 million. Whereas, Optus Mobile won 47 lots for $185 million, and Dense Air Australia 29 lots for approx. $18 million.

5G spectrum auction

“The ACMA designed an auction process—including starting prices—that aimed to maximise efficiency, competitive outcomes and the full utility of this spectrum for 5G. We consider these goals have been reflected in the auction outcome,” said Ms O’Loughlin, Chair of ACMA.

The licenses won at the 5G spectrum auction will commence in March 2020, and are expected to extend until 13 December 2030. ACMA mentioned that arrangements can exist to allow earlier access to band, if no interference is caused to existing licensees.

Also read: “By 2022, carriers that do not transform will be stuck with an outdated operating model and legacy mindset.”— Philippe Millet, i3forum

“Existing licensees have generally been provided an extended period in which they can continue to use this band. During this period, their rights are protected,” Ms O’Loughlin said.

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