Owning spectrum is a key part of being able to deliver a mobile (and fixed wireless) service for consumers. The more spectrum that a telecommunications business has, the better chance of providing fast service and a wider geographic reach.
TPG's mobile network provides services to several brands, including Vodafone, TPG iiNet, Lebara, Felix and Kogan.com Ltd (ASX: KGN) customers.
At the time of writing, the TPG share price is trading 1.9% higher at $4.77.
3.7 GHz spectrum band auction win
TPG said it's set to enhance its 5G mobile and fixed wireless services after successfully acquiring new licences in the 3.7 GHz spectrum band.
It has bought spectrum in metropolitan and regional areas for $128.2 million. This was part of the Australian Communications and Media Authority's (ACMA) spectrum auction.
Spectrum has been purchased for Sydney, Melbourne, Adelaide, Brisbane, Canberra, Perth, Hobart, rural Western Australia and regional Queensland.
TPG said the acquisition represented a "significant milestone in TPG's long-term commitment to improve and extend 5G services and coverage across Australia."
The company will fund this acquisition through its existing debt facilities.
TPG said the new spectrum holdings complemented its current 5G spectrum licences. This includes its 3.6 GHz and 26 GHz millimetre wave holdings. The licence term for the 3.7 GHz spectrum band is 20 years.
TPG has so far rolled out more than 2,800 5G sites, with its mobile network covering more than 96% of the Australian population across Australia's 10 largest cities.
The TPG Telecom CEO Iñaki Berroeta said:
Spectrum is a critical asset, enabling TPG Telecom and its family of brands to meet our customers' growing needs for high-speed 5G services today and into the future.
Once deployed, this spectrum will deliver a huge capacity boost for our 5G mobile and fixed wireless services, providing greater speeds and better performance for new and existing consumer and business customers.
TPG share price snapshot
The TPG share price has had a bumpy ride in 2023, falling 1.45% in the year to date.