Australian operator TPG Telecom has agreed to acquire additional 5G spectrum holdings in the 3.6 GHz band from Dense Air. Completion of the transaction will increase TPG Telecom’s 3.6 GHz spectrum holdings from 60 MHz to 90 MHz in Adelaide and 95 MHz in Brisbane, Perth and Canberra. In Sydney and Melbourne, TPG Telecom will acquire 5 MHz of 3.6 GHz spectrum, increasing its holdings to 65 MHz after the transaction.
TPG Telecom is rolling out its 5G network in major cities, targeting 85 percent population coverage in Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra by end-2021.
Transaction details
The transaction will involve a subsidiary of TPG Telecom acquiring all the shares of an Australian subsidiary of Dense Air, which holds 3.6 GHz spectrum licenses acquired at auction in 2018. Subsidiaries of TPG Telecom and Dense Air have also entered into a separate agreement under which TPG Telecom will sell its 2.6 GHz spectrum band licenses to Dense Air Networks Australia.
The agreements for both the 3.6 GHz spectrum transaction and the 2.6 GHz spectrum transaction are subject to conditions precedent, including that the two transactions are completed concurrently, and receive approval by the Australian Competition and Consumer Commission. Following satisfaction of the conditions, the transactions are expected to complete in September 2021.
No financial details related to the transaction have been disclosed.
