TPG Buys Spectrum, Moves To Build Own Mobile Network
TPG is set to part ways with mobile partner Vodafone, following the company’s acquisition of 700Hz spectrum and the announcement that it will move to build its own mobile network.
The company paid $1.26 billion for access to the 4G mobile spectrum at an ACMA auction this week, taking home 2x10MHz of mobile spectrum in the 700MHz band.
TPG say they plan to spend $600 million over a three year period to roll out their mobile network to 80% of the Australian population.
Previously, TPG’s mobile offerings ran on Vodafone’s network. This investment in their own infrastructure is expected to make them more competitive in the mobile space and fuel new growth for the company.
TPG’s Executive Chairman and CEO, David Teoh, said “This acquisition of 700MHz spectrum in Australia is a tremendous development for the long-term future of TPG. We are uniquely positioned to leverage our success in the Australian fixed-line broadband market to drive the next phase of growth for TPG’s shareholders and bring new competition to the Australian mobile market.”
“We believe that our mobile strategy will be complementary to our ongoing fixed line business, with the ability to bundle mobile and fixed services expected to have a beneficial effect on our already low fixed services customer churn.”
The move also bodes ill for rival Telstra, whose shares dropped 7.2% in the wake of the move.