$1.964 million was bid for 4G spectrum in the 700MHz and 2.5GHz band at the auction concluded in May 2013.
The winners at auction were as follows;
| Bidder |
Spectrum secured |
Total price |
|
|
700 MHz band* |
2.5 GHz band* |
||
| Optus Mobile |
2×10 MHz (20 MHz in total) |
2×20 MHz (40 MHz in total) |
$ 649,134,167 |
| Telstra |
2×20 MHz (40 MHz in total) |
2×40 MHz (80 MHz in total) |
$ 1,302,019,234 |
| TPG Internet |
Nil |
2×10 MHz (20 MHz in total) |
$13,500,000 |
| Total spectrum sold |
2×30 MHz (60 MHz in total) |
2×70 MHz (140 MHz in total) |
$ 1,964,653,401 |
| Total spectrum unsold |
2×15 MHz (30 MHz in total) |
Nil |
N/A |
The 700 MHz spectrum will provide wider and deeper coverage than the 1800 MHz currently currently used on the Telstra and Optus LTE networks and soon to be used by VHA. Due to the high reserve price ($M311 per 2X5MHz) set by the Minister for Communications on this spectrum the 700 MHz band sale yeilded 95% of the $M1,964 for the auction. This despite the fact that largely due to Vodafone’s no show 2X15 MHz of the 700 MHz spectrum worth $M933 at the reserve price was left on the table after the three clock rounds. Ex Communication Minister Stephen Conroy has set in place a public consultation process on disposal of the unsold spectrum. Information on this is here. Already the Police Federation is making a bid for 2X10MHz of the unsold spectrum to be given over for emergency services communications.
One issue which has yet to be played out is the mobile device support for the 700 MHz band LTE Band 28 which Australia has adopted. This band plan termed APT700 is central to the 700 MHz part of the 4G auction. There is growing interest in the APT700 banding outside of the USA which has a different and incompatible 700MHz plan covered by LTE Bands 12,13,14 and 17. A compatible plan could be adopted in Europe though this is unclear at this stage. There is a comprehensive discourse on APT700, including the issue of the need for two duplexors to support it, here.
The question is how big an issue will it be for Australian network operators and consumers to buy a range of advanced devices which will include support for the Asia Pacific (LTE Band 28) plan. Mike Wright ED Networks and Access in Telstra thinks this will not be an issue. Just as Telstra’s use of 850 MHz spectrum for NextG and 1800 MHz for LTE worked well as others joined the bandwagon, Mike says some European and South American, as well as Asia Pacific operators will come on board with the APT700 LTE band 28. See Mike’s post here.
Another question is – what is TPG’s motive or plan for their modest investment? It is hard to see a good business case to roll-out a network built with 2.6 GHz spectrum alone. They might be able to get a roaming deal with one of the big three and use their spectrum in a limited coverage network alongside this. OneTel had an arrangement something like this back in 2000. You could hope for a better outcome for TPG if they tread this path.