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Optus Urges Canberra To Think Again On 5G Spectrum Auction

Optus – which has been shut out of this month’s planned auction of 5G spectrum –  is urging the Government  to rease the quota of spectrum allowed for all players meaning that it could also rejoin the fray according to recent reports.

It has warned that Treasury risks losing out on hundreds of millions in revenue by not delaying the process following the planned merger between Vodafone Hutchison Australia and TPG – a deal which would see just two bidders Telstra and TPG taking part in the auction.

Telstra was shut out of the auction because it already has more 5G spectrum than the planned allocations of 60MHz in metropolitan areas and 80MHz in regional areas.

“The announcement of the proposed merger between TPG and Vodafone changes some of the critical assumptions underpinning the auction. Importantly there will be one less bidder which creates a real risk that demand will be lower than supply and that spectrum will only be sold at either the reserve price or be unsold” said Optus VP Andrew Sheridan.

“Given this it would be reasonable to pause the auction and review the auction settings to ensure that there is competition in the bidding and that a genuine market price discovery process occurs.”

 

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