Telstra set on extra 5G spectrum for sale
Telstra is eyeing a substantial chunk of the new 5G spectrum set to hit the market in early 2021.
Telstra is looking to extend its lead in the local 5G race, with the incumbent telco eyeing a substantial chunk of the new 5G spectrum set to hit the market in early 2021.
With the Morrison government set to put 2.4 gigahertz (GHz) of 5G ‘millimetre wave’ (mmWave) spectrum in the 26 GHz band on the block, Telstra said the spectrum will add extra muscle to its existing 5G network.
Telstra is aiming to deliver 5G coverage to at least 35 locations across Australia within the next 12 months, having invested around $8bn into its mobile network over the five years to June 30, 2019.
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The mmWave spectrum is a vital ingredient in the planned high speed offers, especially fixed wireless services than that can compete with the National Broadband Network that Australian telcos are hoping to launch.
While the extremely high frequency spectrum can be used to deliver lightning speeds, it is susceptible to interference and cannot travel long distances. However, telcos can counter the deficiencies through the use of denser networks of small cells placed on available street infrastructure like power poles, bringing the equipment much closer to homes.
“The Morrison government is allocating this spectrum to support a number of important communications policy objectives, including the rapid deployment of 5G technologies, the promotion of competitive market outcomes, and encouraging investment in infrastructure across both metropolitan and regional Australia,” Minister for Communications, Cyber Safety and the Arts Paul Fletcher said on Friday.
Telstra is likely to face stiff competition from Optus and Vodafone Hutchison Australia (VHA) for the mmWave spectrum.
Optus currently has 5G in more than 70 sites across Sydney, Brisbane, Perth, Melbourne, Canberra and Adelaide and the telco said it was gearing up for the auction.
“Optus welcomes the certainty that a high-band spectrum auction brings as we continue to rollout our 5G delivery and plan for future 5G use cases,” a spokesman said.
“We look forward to further updates from the minister on plans for key low band spectrum.”
Meanwhile, VHA will also look to make an impression and the telco’s chief strategy officer Dan Lloyd said the mmWave spectrum will play an important role in the development of the local 5G environment.
“We welcome the proposed reallocation of the 26 GHz band in 2021 as the uncertainty regarding Vodafone’s proposed merger with TPG Telecom will have been resolved in February next year.”
The federal government is seeking guidance from the Australian Competition and Consumer Commission on how much spectrum each telco will be allowed to buy.
While the price of the spectrum yet to be allocated, the federal government will be hoping for a repeat of last year’s auction of the 125 megahertz (MHz) of 5G spectrum in the 3.6 GHz band, which netted a better-than-expected $853m.
The average price paid by the telcos of 29c per megahertz per population (the amount of spectrum owned in a region multiplied by the number of people reached) defied expectations, edging close to one of the highest price paid for 5G spectrum in the world.
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