Top telcos pay high prices for access to 5G spectrum
AUSTRALIA’S telco regulator has harvested more than $850 million from the auction of 5G spectrum as Telstra, TPG Telecom and Vodafone Hutchison Australia splash out.
The Australian Communications and Media Authority yesterday revealed it had completed an auction of spectrum on the 3.6 gigahertz band.
It is widely regarded as the optimum band for the deployment of 5G services and the final auction price easily outstripped the reserve price.
The authority had set a reserve price of about $185 million for the full 350 lots being auctioned at 8c a megahertz per head of population — a measure reflecting the population in each region covered by the spectrum on offer.
The average price paid by the telcos ended up at about 29c a megahertz per head, which is among the highest prices paid for 5G spectrum globally.
Telstra paid $386 million for 143 lots of spectrum, while a TPG-Vodafone joint venture picked up 131 lots for $263 million. Optus, which wasn’t allowed to buy any spectrum in metropolitan regions because of its existing rights to 5G spectrum, bought 47 lots in regional Australia for $185 million.
There was a surprise fourth player in the race, British company Dense Air. A subsidiary of US-based small cell manufacturer Airspan Networks, Dense Air picked up a key holding of 29 spectrum lots for $18 million. Dense Air provides technology to mobile carriers to increase coverage or support more users in a given area on their networks.
Telstra chief Andy Penn said the telco had no com- plaints about the way the auction was carried out.
“We are very pleased with the outcome of the auction,” Mr Penn said. “This will enable us to provide the data, connectivity, low latency and speed necessary to enable new products and services.”
Telstra and Vodafone now have 60 MHz of contiguous 5G spectrum in all major capital cities, bringing both on par with Optus.
However, Vodafone Australia chief Inaki Berroeta said ACMA would need to put more spectrum on the market.
“While we are pleased to have secured spectrum licences in every available area, robust competition for artificially limited supply saw the companies participating in the auction pay some of the highest per MHz per pop prices for 5G spectrum in the world so far,” Mr Berroeta said.