Australian Mid-Band Spectrum Auction Sets Up MNOs for 5G

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The Australian Communications and Media Authority (ACMA) announced a successful completion of the 3.4/3.7 GHz bands auction. A total 574 of the 588 available lots have been allocated to support the rollout of 5G and fixed wireless services in Australia, raising a total of $474 million. ACMA announced that four mobile network operators, Telstra, TPG Telecom (via its infrastructure subsidiary, Mobile JV), Optus Mobile along with government owned NBN Co all secured spectrum licenses in the auctions. 

Telstra, Australia’s largest MNO, according to Inside Towers Intelligence, was the big winner, spending $358 million to acquire an additional 55 to 110 MHz spectrum across most parts of Australia including 80 MHz in key capital city markets of Sydney and Melbourne. Telstra said it acquired a large proportion of the spectrum at “a highly competitive price,” setting up its mid-band spectrum assets for the next 20 years. 

Mobile JV invested $84 million for 3.7 GHz spectrum mainly in metropolitan areas in all capitals except Darwin, along with a small number of rural and regional lots in Western Australia and Queensland.

Optus Mobile spent $22 million for 20 MHz of 3.7 GHz spectrum covering northern New South Wales and South Queensland, adding to its 35 MHz in the 3.6 GHz band.

NBN Co. focused on 3.4 GHz spectrum, spending $10 million for lots spread around Australia.

“The successful allocation of the 3.4 and 3.7 GHz band spectrum will support connectivity and 5G services across all the main mobile operators and the NBN Co,” commented Michelle Rowland, Australia’s Minister of Communications. 

The 3.4/3.7 GHz mid-band spectrum became available after a series of frequency reallocations from previously used applications including wireless broadband, fixed satellite, and amateur services.

ACMA said the new licenses will come into force “shortly,” with the 3.4 GHz licenses to run until 2030 and the 3.7 GHz licenses expiring in 2044.

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