Telstra has bought $1.3 billion worth of spectrum to boost its mobile and data capabilities. Source: Supplied
TELSTRA will spend $1.3 billion to boost its mobile and data capabilities.
The telco giant announced on Tuesday it had successfully secured licences in the 700 MHz band and 2.5 GHz band in the spectrum auction held by the Australian Communications and Media Authority (ACMA).
Telstra chief executive David Thodey said the auction result would mean his company would continue to deliver a superior mobile experience for its customers.
"With the 700 MHz and 2.5 GHz spectrum we will be able to deliver faster speeds, more capacity and expansive wide area coverage of 4G LTE technology on our Next G network," he said in a statement.
"The low-frequency nature of 700MHz means the mobile signal can travel relatively longer distances, which is ideal for improving the services we can offer to customers in rural and regional areas.
"It also means better in-building coverage in metro and suburban areas."
In the spectrum auction, Telstra's total package was secured at close to the reserve prices and the total investment by the company will be $1.302 billion.
The spectrum allocations will be financed predominantly through debt, the company said.
Telstra is required to pay the successful price in the third quarter of 2014, and the spectrum licences have a term of 15 years.
AAP gfr/dmc
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