Australia
The Australian government will auction a further 30 megahertz of paired spectrum in the 1.8 GHz band early next year. The auction, which will be conducted by the Australian Communications Authority (ACA), is expected to reap up to $200 million (US$130 million). The government must decide whether it will cap purchases to ensure the auction process encourages the entry of new players. The spectrum to be offered is now used for microwave services but could be used for digital mobile telephony and wireless local loop services. The ACA is also looking at selling the last 5 megahertz tranche in the former 800 MHz analog AMPS band in regional areas.
Hutchison Telecommunications Australia Ltd. revealed plans to sell 29.5 percent of the company in an initial public offering. Hutchison Australia, 77.5 percent owned by Hong Kong-based Hutchison Whampoa Ltd., plans to raise about $215 million (US$136.6 million) in capital to partially fund the rollout of its mobile phone network. Hutchison Whampoa will retain a 54-percent stake in the listed entity, which is preparing to introduce the Orange brand to Australia. Telstra is expected to raise more than $16 billion (US$10.17 billion) through the sale of another 16.6-percent stake by the Australian government in October. Mobile phone group Vodafone Australia also plans a stock sale later this year. Hutchison Australia is spending $340 million (US$216 million) to build Australia’s fourth mobile network based on CDMA technology. The network, which covers Sydney and Melbourne, is due to be launched next year.
Sri Lanka
Sri Lanka extended the last date for submitting financially binding bids for the government’s 10.5-percent stake in Sri Lanka Telecom. Four entities-the local Employees Provident Fund, Commonwealth Development Corp., a consortium with Sri Lanka’s investment bank and an NTT-led consortium-submitted expressions of interest. Sri Lanka Telecom is 35-percent owned and managed by NTT, and the Sri Lankan government holds 61.5 percent of its shares.
