Telstra Struck The Winning Bid In The 5G Spectrum Auction

  • Dec 10, 2018 AEDT
  • Team Kalkine
Telstra Struck The Winning Bid In The 5G Spectrum Auction

Australia’s Government today unleashed the results of a most-waited bidding war among the telco giants Telstra, Optus, TPG and Vodafone Hutchison. In the battle of clutching the most of 5G spectrum, Telstra and the merged group of TPG-Vodafone ended up paying through the nose.

But do you know who has been the winner?

Its Andrew Penn led Telstra Corporation Limited (ASX: TLS). The results released by Australian Communications and Media Authority on Monday, 10 December 2018, reveals that Telstra has secured a maximum chunk of 3.6 GHz spectrum in the 5G spectrum auction held last month. It translates the addition of 30-80 MHz nationwide at the cost of $386 million, strengthening the 5G spectrum capability of the company.   

Now, Telstra’s 5G spectrum castle looks like 60 MHz of 5G spectrum capable in major capital cities, and between 50-50 MHz of contiguous 5G spectrum across regional areas. Above this, the company holds a 5G capable sites on the Gold Coast with a total of 130 such sites across Australia.

Telstra CEO Andrew Penn stated that securing the significant portion of spectrum underscores the Telstra’s capability to provide the super-fast 5G connection across Australia, including both cities and regional areas.

Last week, Telstra undertook the world’s first 5G video call with the HTC 5G Hun mobile smart device. It outlines the world’s first connection of a 5G mid-band commercial device which is expected to be available to Telstra’s customers in 2019.

It seems Telstra is ready to give a tough fight in 5G network across Australia. However, the other telco players have also made a significant footprint in the 5G spectrum auction. Like, TPG-Vodafone Hutchison paid approximately $263 million to acquire 131lots, the second largest portion of the band. Optus has taken up 47 lots for regional areas at the investment of ~$185 million. But Telstra’s bid of ~$386 million for 143 lots has surpassed all the stakes takeover by other participants.

Moreover, the management advised that Telstra is in talks with suppliers and international standard bodies so that it can develop a strong 5G ecosystem. Resultantly, the company will be equipped with high-connectivity, data, low latency and speed that is required for the 5G rollout.

Mr. Penn stated that latest deal sealed through the 5G spectrum auction reflects Telstra’s commitment to developing the high-end technology in Australia’s regional areas. He concluded that Telstra aims to become Australia’s leading 5G service provider, through the investment of $8 billion to 30 June 2019.

But following the global market meltdown, Telstra has also been impacted in today’s trading session. TLS stock price was down 1.299% to close at $3.040 on 10 December 2018. However, the stock has seen a positive performance growth of 12.02% in the past six months.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK