Seven Bidders Apply For Australia's 3G Auction

date: 12th February 2001

The Australian Communications Authority said Monday that seven bidders have applied to take part in Australia's auction of third-generation spectrum due in March.

The companies are Telstra Corp, Cable & Wireless Optus Ltd, AAPT Ltd, Hutchison Telecommunications Australia Ltd, Vodafone Pacific Pty. Ltd., CKW Wireless Pty. Ltd. and 3G Investments Australia Pty. Ltd.

Optus is 52.5%-owned by Cable & Wireless PLC, AAPT is wholly owned by Telecom Corp. of New Zealand and Vodafone Pacific is the local unit of Vodafone Group PLC.

"The applicants now have until next Monday to confirm their participation and make an eligibility payment, which will be calculated on the basis of the amount they hope to acquire," ACA Chairman Tony Shaw said.

"We expect the spectrum to be used principally for 3G mobile communications, which deliver a new range of services to consumers, allowing mobile access to voice, data and multimedia," Shaw added.

Successful bidders will be allocated licenses for a 15-year term commencing October 2002.

The federal government has factored raising A$2.6 billion from all spectrum auctions into its budget for this fiscal year ending June 30. The lion's share of this is expected to come from the 3G auctions, which analysts say could raise around A$2.1 billion.

But some of the companies involved have already warned they won't match the astronomical prices paid in Europe.

Optus Chief Executive Chris Anderson said last week that he will "walk away" from the auctions if the prices breach an undisclosed internal target by the company.

top