MELBOURNE, Australia-The explosive growth in mobile telephony and the last chance to buy personal communications services (PCS) spectrum in the 1.8 GHz band have led to a fierce bidding war among Australian carriers. The auction for spectrum in all mainland state capital cities also provides an opportunity for a fourth national mobile network.
After 110 bidding rounds, the total value of bids exceeded A$1.2 billion (US$728.4 million). A$350 million (US$212.4 million) was paid in total for 50 percent more digital spectrum (in the 800 MHz and 1.8 GHz bands) two years ago.
Involved in the auction are the three incumbents-Telstra Corp., Optus Mobile Pty and Vodafone Pacific Pty Ltd-along with Hutchison Telecommunications (Australia) and One.Tel Ltd., both of which are rolling out networks; and Primus Telecommunications.
Up for grabs is 30 megahertz divided into 12 lots of 2.5 megahertz, available in Brisbane, Adelaide, Perth, Sydney and Melbourne in the 1755-1785 MHz and 1850-1880 MHz bands.
Apart from the financial windfall, the federal government is hopeful the auctions will deliver increased levels of competition in the mobile market and at least another new mobile carrier.
The 1.8 GHz band is vital for expansion of incumbents’ digital networks, as well as introduction of mobile multimedia services.
At the same time, the incumbents are limited in the amount they can buy. Spectrum caps mean no carrier is permitted to have more than 20 megahertz in each city. The incumbents have 15 megahertz in each city, except Telstra, which has only 12.5 megahertz in Sydney.
Lots in Melbourne and Sydney are attracted the greatest interest. The government is planning to auction third-generation spectrum later this year or in early 2001.
