Direction from minister comes as Australian telcos limited to 40% of low-band sub-1GHz spectrum in upcoming auction.
Minister for Communications Paul Fletcher has directed the Australian Communications and Media Authority to set aside spectrum for Optus and TPG in the upcoming auction of low-band sub-1GHz spectrum. “This will guarantee these operators the opportunity to acquire 10MHz of 900MHz band spectrum at the auction to support continuity of services. Optus and TPG Telecom rely heavily on their 900MHz holdings for their national mobile networks,” the minister said in a statement. The Australian Competition and Consumer Commission (ACCC) previously said it was worried about the low-band holdings of Optus. “Optus’ ability to compete effectively in the mobile services market will likely be constrained if it does not acquire more sub-1GHz band spectrum in the 850/900MHz allocation,” the competition watchdog wrote in April. “In particular, there is a risk that Optus may not be able to roll out 5G technology widely and efficiently in Australia in the absence of more sub-1GHz spectrum.” At the time, the ACCC was not impressed by the concept of setting aside spectrum. “The recommended allocation limit provides a reasonable opportunity for Optus and TPG to acquire spectrum in the 900MHz band that would enable them to continue to provide existing services,” the ACCC said.
