Australia’s Optus has acquired 10MHz of paired 3G spectrum in the 2100MHz band from 3G Investments, a local subsidiary of Qualcomm. Once approved by the regulatory authorities, the purchase will double Optus' 2100MHz paired spectrum capacity in eight capital cities to 20MHz. The move is Optus’ response to growing retail and wholesale customer demand for its range of data services. Financial details of the deal were not disclosed.

Optus Mobile Pty Limited (‘Optus’) announced today that it has agreed to acquire spectrum licences for 10 megahertz (MHz) of paired spectrum in the 2100MHz band from 3G Investments (Australia) Pty Limited, a wholly owned subsidiary of Qualcomm Incorporated.

The transaction is subject to approval from the Foreign Investment Review Board (FIRB) and clearance from the Australian Competition and Consumer Commission (ACCC). Once approved, Optus' registration as owner of the spectrum by the Australian Communications and Media Authority will double its 2100MHz paired spectrum holdings in the eight capital cities from 10MHz today to 20MHz.

Andrew Buay, Managing Director, Optus Products and Delivery said “Optus will use this newly acquired 3G spectrum to support retail and wholesale customer demand for Optus’ increasing range of data services. We believe this transaction will promote continued competition in the Australian mobile services market and are confident it will pass the necessary clearance and approvals from the ACCC and FIRB respectively.

“The purchase of 10MHz of 2100MHz spectrum is illustrative of how Optus is building further capacity in its mobile network to meet the explosive growth in demand for data services. Optus has traditionally been an efficient user of spectrum and we plan to maximise this additional spectrum to support the future growth of 3G mobile services among our retail and wholesale customer base,” Mr Buay said.

In the twelve months up to 30 September 2009, the number of Optus 3G services increased 43 per cent from 2.16 million to 3.08 million, inclusive of Optus mobile broadband customers which increased more than 240 per cent to 688,000.
From an Australian market perspective, mobile broadband services increased by 162 per cent between June 2008 and June 2009 and now account for 25 per cent of all internet subscriptions, which is up from 11 per cent in June 2008, according to the Australian Communications and Media Authority1 .

“It’s also important to note that this purchase exhausts all available 2100MHz spectrum on the secondary trading market that supports the expansion of mobile broadband services. It is now more important than ever that the Government finalise three major spectrum policy decisions which will shape the future of the mobile industry in Australia – that is, the allocation of the digital dividend for mobile broadband services; the allocation of 2.5GHz spectrum for mobile broadband services; and greater certainty regarding the cost and timing of the renewal of expiring 3G spectrum licences,” Mr Buay said.