SingTel's Optus tops 4G spectrum bid for AUD$649m

It'll expand its coverage in Australia.

Optus confirmed its success in bidding for 4G 700 MHz and 2.5 GHz spectrum, as announced today by the Australian Communications Media Authority. Optus successfully bid for 2 x10 MHz of paired spectrum in the 700 MHz band nationally and 2 X 20 MHz of paired spectrum in the 2.5 GHz band for a total amount of A$649 million, reflecting the reserve price for both spectrum bands.

Kevin Russell, Chief Executive Officer, Consumer Australia and Chief Country Officer, said, “Optus is pleased to have secured the additional spectrum we wanted to enable us to deliver a brilliant network experience for our customers.

“The spectrum Optus has acquired in the 700 MHz band will provide stronger 4G coverage across both metropolitan and regional Australia, allowing us to expand our 4G services to more customers than ever before.

“The additional spectrum purchased in the 2.5 GHz band, when combined with our already substantial holdings in 2.3 GHz, will enable Optus to provide unparalleled network capacity for 4G data services to our metropolitan customers,” continued Mr Russell.

The industry has been making increased investments in both additional and renewals of existing spectrum holdings. The amount of spectrum secured from the auction reflects Optus’ strategy of meeting growing customer needs for connectivity and optimising the level of infrastructure through a balance of new build and complementary network investment through initiatives such as infrastructure sharing.

Optus’ approach reflects the growing global trend for multi-band 4G networks, which combines low band 4G frequency for strong coverage with high band spectrum to increase network capacity. With a variety of bands and different Long Term Evolution (LTE) technologies, Optus will gain the flexibility needed to deal with the growing demand for additional capacity and faster network speeds.

Mr Russell said, “Today’s announcement means Optus is well placed to execute a major combined network rollout that will deliver a strong and sustainable business moving forward.

“We now have the right mix of spectrum and network components to ensure a brilliant customer experience that delivers extensive coverage and super-fast speeds.”

The Optus mobile network incorporates 2G, 3G and 4G technologies with Optus’ current 3G coverage reaching over 97 per cent of the population. In April 2012, Optus switched on 4G services in Newcastle and has since rolled out 4G sites in metro and suburban areas of Sydney, Melbourne, Perth, Brisbane, Adelaide, the Sunshine Coast, the Gold Coast, Toowoomba, Byron Bay and Coffs Harbour.

“With our focus on providing customers with brilliant service, this additional spectrum will allow more customers in metropolitan and regional Australia to enjoy Optus’ great service and network,” said Mr Russell.