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Australians to bid for 4G spectrum
07 January 2010
Australian operators Telstra, Optus and Vodafone Hutchison are expected to bid for 4G spectrum to be auctioned by the government
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4G
Australia
LTE
Telstra
Optus
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Hutchison
Comment: Telstra’s participation in the 4G auction is essential if the Australian government is to achieve the price it hopes for — and that means minister Stephen Conroy needs to agree a deal over the National Broadband Network with Telstra and its CEO, David Thodey.
Telstra, Optus and Vodafone Hutchison are expected to bid for the Australian government’s auction of broadcasting spectrum for 4G mobile phone services. The government plans to release 126 megahertz of spectrum, which would allow the nation’s three main mobile telecommunications companies to bid for enough spectrum to build 4G networks.
A 4G network could enable download speeds of up to 100 megabits a second, higher than the 14-20 megabits Telstra achieves on its present network, and at par with the planned National Broadband Network (NBN).
Telstra’s ability to participate in the auction will depend on negotiations with the government over the NBN. Communications minister Stephen Conroy has threatened to prevent Telstra from taking part in any auction unless it agrees to transfer its wholesale fixed-line network to the NBN.
Telstra is awaiting the government’s decision on how much compensation is to be paid for the wholesale network. The government will want Telstra to take part in the auction, as it is unlikely to achieve the $1 billion price tag unless it involves the three telcos in the bidding, or attracts a new entrant. GTB