Telstra wins most lots in Australia’s 5G mmWave auction
Five companies have won spectrum in the Australian Communications and Media Authority’s (ACMA) latest spectrum auction in the 26 GHz band. The 26 GHz band has been identified as optimal for the delivery of 5G wireless broadband services.
Of the 360 lots available in the auction, 358 were sold, realizing a total revenue of Australian $647,642,100, equivalent to almost $0.0127/MHz/POP. The new licensees will have rights to the spectrum for 15 years, starting from later in 2021 through 2036.
Dense Air Australia Pty Ltd won 2 lots for $28,689,900, Mobile JV Pty Limited won 86 lots for $108,186,700, Optus Mobile Pty Ltd won 116 lots for $226,203,100, Pentanet Limited won 4 lots for $7,986,200, and Telstra Corporation Limited won 150 lots for $276,576,200.
Further apparatus licenses in the 26GHz band will be issued next month by ACMA.
“This outcome represents another significant milestone for 5G in Australia. The successful allocation of this spectrum will support high-speed communications services in metropolitan cities and major regional centers throughout Australia,” said ACMA Chair Nerida O’Loughlin.
“This auction is one among a suite of licensing approaches that the ACMA has introduced in the 26 GHz and 28 GHz bands to encourage a wide range of innovative communications uses,” said Ms O’Loughlin.
Optus said it had secured “the most highly valued position at the top of the spectrum band” and foreshadowed new services such as AR/VR video, next-generation cloud gaming and massive simultaneous usage, as well as enterprise use cases such as automation and private networking.
In a blog post, Telstra CEO Andy Penn expressed similar expectations. Penn said the new spectrum capacity was more than ten-times Telstra’s existing 5G spectrum holdings and would be deployed to increase capacity in high-traffic locations such as shopping centers, inner-city train stations and sporting stadiums. Telstra’s mobile networks was increasing by an average of 40% annually.
Telstra is leading in 5G Australia deployments with its 3.6GHz spectrum network expected to reach 75% of the population by the end of June.