SYDNEY, Australia-Hutchison Telecommunications (Australia) Ltd. joined three Australian mobile phone incumbents in securing spectrum in the 1800 MHz band. Proceeds of the spectrum auction totaled more than $809.5 million for the Australian government, with One.Tel Ltd., Telstra Corp. and Vodafone AirTouch plc also receiving spectrum.
The additional spectrum is considered vital for expanding current operators’ digital networks and introducing multimedia services. Cable & Wireless Optus, which operates a Global System for Mobile communications network in Australia, dropped out of the auction last week.
“This auction is clear evidence of the fierce competition between carriers in the deregulated communications sector, which is good news for consumers,” said Tony Shaw, Australian Communications Authority chairman. “The outcome sees several carriers with significantly increased spectrum holdings, which offers real potential for new services.”
Hutchison paid the most-$409.2 million-for its spectrum in each of the five cities where spectrum was available, including Adelaide, Brisbane, Melbourne, Perth and Sydney. Hutchison currently is rolling out a Code Division Multiple Access network in Australia.
However, Reuters reported that Hutchison plans to use the new spectrum to build a complementary network delivering high-speed data to business users, using General Packet Radio Service and Enhanced Data Rates for Global Evolution, both GSM enhancement technologies.
“Spectrum licensing means that successful bidders can use the spectrum for a range of purposes, but we expect it will be used for mobile telecommunications services,” said Shaw.
One.Tel, which is rolling out a national GSM network and is expected to begin service soon, also obtained licenses in all five major markets, paying $319.1 million. Telstra obtained licenses in all cities except Melbourne for nearly $50 million, and Vodafone AirTouch secured spectrum in all cities except Sydney, paying $33.7 million.
One.Tel and Vodafone AirTouch also are bidding for spectrum in the U.K. Universal Mobile Telecommunications System auction process currently under way.
Australian spectrum caps don’t allow incumbents to hold more than 20 megahertz of spectrum in each city. Before the auction, the incumbents had 15 megahertz in each city, except Telstra, which had only 12.5 megahertz in Sydney. ACA plans to auction third-generation spectrum this year or early 2001.
