Telstra wins lion’s share of $853m national 5G carve-up

The auction of Australia’s new 5G mobile network has raised $853 million, with Telstra securing the largest proportion of the high-speed spectrum.

The network is set to launch next year with a promise of more reliable and higher-quality video streaming, and faster fixed wireless internet.

The Australian Communication and Media Authority said Monday all 350 available lots of 3.6 GHz band spectrum had sold at an equivalent of almost 29¢ per megahertz per population — that is per unit of spectrum per person.

Telstra paid $386 million for 143 lots, while Vodafone and TPG, who are in the midst of a merger, won 131 lots for $263 million.

Optus won 47 lots for $185 million and Dense Air Australia won 29 lots for $18.4 million.

“This spectrum is recognised internationally as a key band for 5G services,” ACMA chair Nerida O’Loughlin.

“Timely release of 5G-compatible spectrum will facilitate the early delivery of next-generation 5G services to the Australian public and industry.”

ACMA said licences won at auction will commence in March 2020 and will extend until December 2030, though arrangements already exist to enable Telstra and Optus access to the band in 2019, provided no interference is caused to existing licensees.

The region with the highest winning 5G bid price was regional south-west NSW, at $11.3 million per 5 MHz lot.

Regional northern NSW and southern Queensland attracted the next highest bid, each 5MHz lot going for about $8 million.

Telstra and Vodafone-TPG won 12 lots each in both Sydney and Melbourne at $2.2 million and $1.9 million per lot respectively.

Combined with existing holdings, Telstra now has 60 MHz of contiguous 5G spectrum in all major capital cities, and between 50-80 MHz of contiguous 5G spectrum in all regional areas.

AAP