Saturday, February 11th, 2012 - OVUM
OVUM COMMENT Nicole McCormick, Ovum Senior Analyst Telco Strategy

The government today gave Australia’s mobile operators little financial reprieve when it handed down its final pricing for license renewal.

Comments Nicole McCormick, Ovum Senior Analyst Telco Strategy: “The Government has reduced 800MHz spectrum renewal costs for Telstra and Vodafone, but with the industry having to find an estimated more than $3 billion collectively for mobile re-licensing, the Government’s agenda is clear: maximize revenue from renewals and spectrum auctions.”

Vodafone, which faces the largest spectrum renewal bill of around $1.5 billion, will likely have to call on its global parents – Vodafone Group and Hutchison Whampoa – to assist with financing. Telstra said yesterday it will fund its bill – estimated at around $1.2 billion – through debt.

“Yesterday, the Government unveiled 700MHz/2.5GHz auction parameters that ensure a competitive bidding process. Today it calls on mobile operators to find in excess of $3 billion. Cash flow rich operators will not be so perturbed by the cash calls, others may not be so happy.”


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The government today gave Australia’s mobile operators little financial reprieve...



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