ACMA, after extensive consultation with industry, are proceeding to auction 2X60MHz of 1800MHz spectrum in mostly in non capital city areas. The spectrum (uplink 1725 to 1785MHz and downlink 1820 to 1880MHz) is now widely used world wide as Band 3 LTE.
The reserve price has been set at $0.08 per MHz per head of population. This is markedly cheaper than the reserve set for the auction of the 700MHz, Stephen Conroy termed “Waterfront Spectrum”, which was priced at $1.36 per MHz/pop.The purchasers will be limited to a maximum of 2X25MHz each.
This spectrum will be useful to expand the capacity of 4G LTE networks and will be of particular benefit to Vodafone which is rich with 1800MHz spectrum in the capital cities but has virtually none elsewhere. As Vodafone did not compete in the 700/2600MHz 4G auction they have been spectrum limited with their 4G roll-out in country areas to date. Optus also holds no 1800MHz spectrum outside the capital cities but has been able to roll out 4G LTE agressively using its new holding of 700 and 2600MHz spectrum and its 98 MHz of TDD LTE 2300MHz. Telstra mostly has 2X15MHz of 1800MHz spectrum nationally see more detail here and has widely deployed LTE using this spectrum. All are expected to compete in the auction. Others with an interest in the 1800MHz band are big miners, air and rail operators and defence.
Applications to participate in the auction close on 1st October 2015 and the auction will commence on 30th November.
Information about the consultation and auction process is on the ACMA web site here.