Telstra Lodges Full Deposit For Australian 3G Auction

date: 19th February 2001

The Australian government said Monday that four out of seven approved bidders in its third-generation mobile phone spectrum auction have lodged a full deposit or eligibility payment, which allows them to bid for as much spectrum as they are legally able to hold.

The remaining three bidders submitted smaller deposits indicating they don't plan to bid for national licenses at the auction.

Telstra, Cable & Wireless Optus, Vodafone Pacific, and 3G Investments all lodged the maximum deposit or eligibility payment.

3G Investments is a subsidiary of ArrayComm Inc.

AAPT, Hutchison Telecommunications Australia Ltd. and CKW Wireless Pty. Ltd. lodged only partial bids.

CKW Wireless, which is a subsidiary of Qualcomm, lodged by far the smallest eligibility payment, indicating that firm has only a modest appetite for 3G spectrum.

The size of each bidder's deposit depends on how much spectrum they intend to bid for although it doesn't indicate how much they are willing to pay for that spectrum.

Bidders had to lodge the deposit by 0000 GMT Monday to participate in the auction, which will likely get underway in mid March.

Under the auction rules, two national 3G spectrum licenses are up for grabs. There are also individual spectrum lots available that together are roughly equal to two further national licenses.

Analysts have said that if bidders amalgamate their bids or only up to five of the seven bidders emerge as serious bidders, then there will be little price tension, which could moderate likely spectrum auction proceeds.

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