TPG Telecom to acquire 5G spectrum in 3.6 GHz band from Dense Air

Australian operator TPG Telecom has agreed to acquire additional 5G spectrum holdings in the 3.6 GHz band from Dense Air.Completion of the transaction will increase TPG Telecom’s 3.6 GHz spectrum holdings from 60 MHz to 90 MHz in Adelaide and 95 MHz in Brisbane, Perth and Canberra. In Sydney and Melbourne, the telco will acquire 5 MHz of 3.6 GHz spectrum, increasing its holdings to 65 MHz after the transaction.

“This spectrum acquisition will enhance our 5G customer experience and set us up for future customer growth as we roll out our 5G home internet service to meet customer demand for NBN alternatives,” TPG Telecom CEO Iñaki Berroeta said.

“As this spectrum is immediately adjacent to our existing 5G spectrum holdings, it can be deployed quickly and without significant cost,” he noted.

One of five local telcos

Dense Air was one of five local telcos, including TPG Telecom subsidiary Mobile JV, that successfully bid for and secured the rights to radio spectrum in the 26 GHz band, considered an optimal ingredient for delivering 5G services in Australia, in April. 

In 2018, Dense Air paid AU$18.5 million for 29 lots of spectrum in the 3.6GHz band, consisting of seven lots each in Brisbane, Canberra, and Perth; six in Adelaide; and one each in Melbourne and Sydney. The licences run until 13 December 2030.

At the same time, Dense Air will be acquiring TPG’s licences in the 2.6GHz band.

Various conditions

According to a statement by TPG, the agreements for both the 3.6 GHz spectrum transaction and the 2.6 GHz spectrum transaction remain subject to various conditions, including that the two transactions are completed concurrently, and receive approval by the Australian Competition and Consumer Commission.

The deal represents the latest step in TPG Telecom’s ongoing efforts to consolidate its mobile telco spectrum licence holdings.

Last month, TPG Telecom and Telstra revealed they had teamed up to ‘restack’ two bands in their combined radio spectrum holdings in a bid to boost data speeds for customers. 

“As this spectrum is immediately adjacent to our existing 5G spectrum holdings, it can be deployed quickly and without significant cost,” he added.