Government to auction 700 MHz spectrum

The federal government will put a 2 x 15 MHz block of valuable 700 MHz spectrum up for auction to give mobile operators a chance to expand their mobile broadband capacity.

The 700 MHz spectrum is part of the ‘digital dividend’ of airwaves freed up by the migration from analog to digital television.

The global mobile industry favours the 700 MHz band due to its wider coverage and superior ability to penetrate buildings compared to higher-band spectrum, which has higher capacity but lower range.

The band is being used in mobile broadband networks in numerous markets worldwide, including Australia, increasingly as part of networks making use of both low- and high-band spectrum.

In a statement, Minister for Communications Mitch Fifield said the decision to auction the spectrum was made following a submission by Vodafone requesting to be directly allocated 2 x 10 MHz of unsold 700 MHz spectrum, circumventing an auction process.

A consultation into Vodafone’s proposal revealed that there is strong interest in the airwaves among other industry players, so a competitive tender is the best way to balance competing interests, he said. Competing providers including Optus, Telstra and TPG made submissions to the consultation.

The government has tasked ACMA with conducting the auction, and will issue a formal direction to the regulator covering the reserve price, allocation limits and other criteria.

Image courtesy of Carl Lender under CC