Telecommunications and IT company TPG has announced today in a statement to the Australian Stock Exchange (ASX) their intention to build a mobile network in Australia.
The network would use current advanced technology and be worth $1.9 billion, using a license for 700MHz spectrum to be purchased in addition to their existing spectrum in the 2.5GHz and 1800MHz range. The 700MHz spectrum license includes 2x 10MHz spectrum blocks in the 700MHz band with the licenses going live from the 1st of April 2018, and expiring on the 31st of December 2029.
The TPG mobile network would reach 80% of the Australian population, being built over the next three years. TPG intends to roll out between 2,000-2,500 mobile sites, as well as small cell sites as part of the rollout.
CEO of TPG,David Teoh said of the acquisition of the spectrum:
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,
The announcement of the TPG acquisition of licenses for blocks in the 700MHz spectrum comes on the same day as Vodafone announced their acquisition of 2x 5MHz blocks of 700MHz spectrum.
TPG currently offers mobile offerings through an MVNO relationship with
OptusVodafone to offer 4G mobile service. This move to their own network would allow TPG more options.
In terms of sustainability, TPG says they expect to reach breakeven earnings before interest, tax, depreciation and amortization (EBITDA) from their network with only 500K subscribers – a market share of ~2%.
TPG will begin trials next year, before the full rollout. It’s an interesting move, and well, more competition is always good.
Will you try out TPG’s network?