Telstra wrote a submission to the ACMA outlining spectrum requirements for all carriers/NBNCo by 2020.
The forecast was that to cope with the traffic loads 1100MHz of spectrum was required.
700MHz due to its propagation properties is likely to be our primary means of communication over the airways long after 5G is turned on. There is nothing on the horizon to replace it.
LTE-M and LTE-IOT will be highly dependent on 700MHz. These standards will power the Internet of things. The other scenario that hasn't been mentioned is what if Optus gets 2 x 10MHz and Vodafone decide 2 x 5MHz is not economic to build a 700MHz network?
The 2 x 5MHz will be unsold. The ACMA will raise the current spectrum cap of 2x20 and Optus and Telstra will have a chance to rebid for the 2x5Mhz
This auction is critical to Vodfone. They really need to win this spectrum or in a few years their network will be very sub standard to the other two.
As for Optus its an opportunity for them to push out one of their competitors, and to increase their competitors costs..
Low Cost Mobile Networks, and the Internet of things, will depend on 700MHZ.. Thats why the carriers are prepared to pay so much for the spectrum.
As for the share price, could be someone hopping on on the whim that domestic roaming will be declared.
If it is declared the share price should go up considerably. If you are a gambling man maybe it may go up further today on the chance that domestic roaming will be declared.. I have read the major submissions, I do not think domestic roaming will be declared. Optus, Telstra and well over half of the submissions from rural areas are against it. Optus and Telstra have argued strongly that cheaper rates are already available through MVNO's. Woolworths, Aldi, Boost, Virgin etc, on their networks
So maybe more volume possible share price, increase today??
The ACCC should hand down its decision on domestic roaming next week..
All gamblers and day traders should get out before that decision is handed down in my opinion.
Domestic Roaming will more than likely get the thumbs down
HTA Price at posting:
8.5¢ Sentiment: None Disclosure: Not Held
