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TPG Spectrum Mystery Explained

By Computer Daily News | Thursday | 09/05/2013

The mystery of what TPG Internet plans to do with the 2.5GHz spectrum it bought in the just-closed government auction and which set many analysts talking - has been partly revealed.

It's most likely to be put together with the company's existing backhaul fibre assets in a new wireless broadband product aimed at business users in major cities, according to a Communications Day report, quoting TPG general counsel Tony Moffat.

This would give TPG two networks: its existing Australia-wide general-use 3G offering, which hitches a ride on the Optus network - and known for TPG's promotion of so-called "unlimited" plans; and its own much smaller network, mainly providing speedy wireless broadband data to business users in major cities.

TPG paid $13.5 million for the 2x10MHz blocks it acquired in the 2.5GHz band in the two-week auction.

Moffat stressed there would be no change to the current arrangement with Optus.

"It's probably right to describe [the new 2.5GHz service] as complementary; we think there are opportunities there for us to sell to corporate and small business customers, and potentially consumers, with specific wireless broadband requirements," he said.

"We have a pretty extensive fibre network; backhaul's a pretty essential component for any kind of wireless broadband play," he added.

"And with a nice big fibreoptic network that covers quite a few towns, we think we can use the 2.5GHz spectrum to add to the suite of products that we have, and give consumers and [business] customers a wireless broadband product that will fit well with our existing broadband suite."

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