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 Thursday, May 23, 2013
The Australian Communications and Media Authority (the ACMA) has announced the outcomes from the digital dividend spectrum auction, which concluded this morning.
 
All three bidders—Optus Mobile, Telstra and TPG Internet—secured spectrum in the auction, resulting in total revenues of nearly $2 billion.
 
Four companies initially applied to participate in the auction. However, Vodafone Hutchison Australia withdrew before the auction, which started on 23 April 2013.
 
Following is a table of the auction results:

Bidder

Spectrum secured

Total price

700 MHz band*

2.5 GHz band*

Optus Mobile

2×10 MHz
(20 MHz in total)

2×20 MHz
(40 MHz in total)

$ 649,134,167

Telstra

2×20 MHz
(40 MHz in total)

2×40 MHz
(80 MHz in total)

$ 1,302,019,234

TPG Internet

Nil

2×10 MHz
(20 MHz in total)

$13,500,000

Total spectrum sold

2×30 MHz
(60 MHz in total)

2×70 MHz
(140 MHz in total)

$ 1,964,653,401

Total spectrum unsold

2×15 MHz
(30 MHz in total)

Nil

N/A

FIGURE 1: AUCTION RESULTS

*Under the allocation limits, a single bidder could not acquire more than 2×25 MHz (50 MHz in total) in the 700 MHz band and more than 2×40 MHz (80 MHz in total) in the 2.5 GHz band.

‘The auction process itself ran smoothly and resulted in the allocation of spectrum to the companies that valued it the most,’ said the ACMA’s Chairman, Chris Chapman.

Demand in Clock Round 1 of the auction led to three unsold lots in the 700 MHz band. In the 2.5 GHz band, demand exceeded supply in the first round but reached equilibrium at the end of Clock Round 3, at which point the clock rounds closed. This level of demand during the clock rounds meant prices payable by bidders are only marginally above reserve prices.

‘The auction tested the market and the auction’s conclusion is another important step toward realising Australia’s digital dividend,’ said Mr Chapman.

‘This decades-long process of spectrum reform has already transformed the television industry, delivering greater diversity and better technical quality of television services to viewers. It will be complete when the new licences in the 700 MHz band become operational at the beginning of 2015.’

‘By making spectrum previously required for analog television transmissions available to meet rising demand for high-speed wireless broadband, the digital dividend auction will well position the Australian telecommunications industry to deliver fast, ubiquitous and symmetrical mobile broadband connectivity to consumers and industry,’ Mr Chapman said.

Attached is the aggregate demand in each clock round (Figure 2) and the frequency assignments in each band for each successful bidder (Figure 3).

For further information about the digital dividend auction, please see the backgrounder.

For more information, please contact: Emma Rossi, Media Manager, (02) 9334 7719 and 0434 652 063 or media@acma.gov.au.

Source: ACMA.