Forthcoming sale of spectrum by the government sees telcos eying 4G networks

It is expected that a new super-fast 4G mobile broadband network could soon be created by Vodafone Hutchison, Telstra and Optus as they begin to work on their responses to the proposed broadband spectrum auction by the Federal Government.

The ‘digital dividend’ of spectrum that will be released by the analog to digital TV switchover would be more attractive to mobile network operators if it were made available in a large block according to a green paper that was recently issued by Stephen Conroy, the Communications Minister.

The three major Australian mobile network carriers will be able to bid for a large enough portion of the spectrum to be able to build their own 4G networks with the government target of 126MHz of spectrum to be released, which is more than the 106Mhz the US are releasing and an amount similar to that released in Britain.

The network operator Optus said “Optus has a keen interest in digital dividend spectrum to underpin the deployment of our next generation mobile broadband networks.”

Compared to the current broadband speeds of 14Mbps to 20Mbps offered by Telstra a new 4G network could offer much higher speeds closer to the planned National Broadband Network with peak download speeds of 100Mbps. Although it is believed that it is interested in building its own 4G network, Telstra have so far not commented.

The current negotiations between the government and Telstra over the National Broadband Network will play a large part in whether the carrier will be able to take part in the auction. A threat has been issued by Senator Conroy that unless Telstra agree to the transfer of its wholesale fixed-line network to the NBN it will not be allowed to take part in the auction.

When the level of compensation the government is willing to pay to Telstra for it relinquishing its wholesale network it will then be able to decide on the benefits and costs of bidding for 4G spectrum.

Source – The Australian