In a significant move to bolster its 5G network, telecom giant Telstra has emerged as the biggest bidder in Australia’s recent auction of spectrum in the 3.4GHz and 3.7GHz bands. Telstra’s substantial investment of over half a billion dollars, totaling $545.6 million for 326 spectrum lots, secured a broad footprint across both bands, including an additional 80MHz in Sydney and Melbourne. This strategic acquisition will provide Telstra with a significant advantage in expanding its 5G network capacity and delivering enhanced services to its customers.
In contrast, TPG, through its infrastructure subsidiary Mobile JV, acquired a more modest 44 lots for just over $128 million. Optus also took a conservative approach, securing only four lots for $33.5 million. NBN Co, aiming to expand its fixed wireless broadband reach and reduce reliance on satellite services, acquired 200 lots for $14.4 million.
The auction, which netted the Australian government nearly $722 million, saw Telstra emerge as the clear winner in terms of both spectrum acquisition and overall investment. The mid-band spectrum secured by Telstra is crucial as it is compatible with “almost all 5G mobile devices,” ensuring compatibility with a wide range of consumer devices.
Optus’s spectrum acquisition was limited to the 3.7GHz band in rural northern NSW and southern Queensland. TPG’s focus was primarily on metropolitan 3.7GHz spectrum in all capital cities except Darwin, with a few additional lots in regional Western Australia and Queensland. NBN Co’s strategy centered on securing 3.4GHz spectrum across Australia.
The auction marks the culmination of a process involving reallocations of spectrum previously covered by a wide range of licenses, including those for wireless broadband, fixed satellite, radiolocation, and amateur services. The new licenses will come into effect “shortly,” according to the Australian Communications and Media Authority. The 3.4GHz licenses will run until 2030, while the 3.7GHz licenses will expire in 2044.
