The Australian Communications and Media Authority recently conducted an auction wherein Telstra and Optus spent a massive $2,092 Billion on the 850/900 MHz band spectrum.

For $1.476 Billion, Optus has acquired 2x25 MHz of the 900 MHz spectrum. The telco said that this will "deliver a significant uplift of 5G coverage nationwide, in addition to its fastest 5G network as recognised by independent benchmarks."

Optus CEO Kelly Bayer Rosmarin said that "With this additional spectrum and our existing mid and high band spectrum, we can continue to deliver great coverage and bring the benefits of our technology leadership to more Australians."

"We applaud the government for prioritising competition and consumer interests in ensuring a competitive auction process that has also delivered more equitable holdings of this critical low band spectrum."

“The auction result is a fantastic outcome for Australian consumers and businesses. Optus is building the network of the future for our customers, and 900 MHz spectrum is its foundational layer.”

Meanwhile, Telstra’s investment reached $616 million to secure the 2x10MHz in the auction. This is the maximum amount of low band spectrum that the telco was allowed to bid under the competition limits which the government set.

Telstra CFO Vicky Brady said that "With the 2x10MHz of 850MHz spectrum we've secured in this auction, added to our existing spectrum holdings, we now hold 2x40MHz of low-band spectrum in the major cities and 2x45MHz in regional and remote areas."

"This is more than any other carrier, which is important given our larger customer base, and will help us continue to provide the best mobile coverage and service.

"Over the seven years to end FY22, we will have invested AU$11 billion in our mobile network nationally with AU$4 billion of this invested in our regional mobile network. Because of this our mobile network now covers one million square kilometres more than any other telco -- that's the size of New South Wales and Victoria combined."

On the other hand, TPG said that it has strong low-band spectrum holdings. These are already deployed in the 4G and 5G networks of the telco.

"Given our existing low-band spectrum, TPG Telecom determined it was not in the best interests of our customers or shareholders to acquire more low-band spectrum at this auction."

According to ACMA, the spectrum licences will begin in July 2024. The licenses will have a 20-year shelf life. However, telcos may get early access under "special circumstances."