Telstra (ASX: TLS) announced today that it has added significant spectrum to its offerings after a license auction held by the Australian Communications and Media Authority.
"The spectrum will be used to enhance our network to help support extraordinary demand growth for mobile services and data," said CEO David Thodey in a statement today. "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."
According to the telecom, its $1.3 billion spectrum package bid won "close to the reserve prices." The company's total 2012-2013 wireless network investment is expected to clock in at $1.2 billion. Combined with its recently announced new LTE-Advanced 4G Technology, Thodey noted that the additional spectrum "will help ensure we continue to deliver Australia's leading mobile network for our customers."
Telstra will have to pay up for its package by Q3 2014, and expects to finance the purchase primarily through debt. The licenses will go into effect between October 2014 and February 2016, and carry a 15-year term.
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