Optus Buys WiMAX Network - Plans to Radio Spectrum to Expand its LTE Network
Published on: 21st Feb 2012
Note -- this news article is more than a year old.
Australian mobile network, Optus has entered into a conditional agreement to buy the local WiMAX network operator, Vividwireless from Seven Group Holdings (SGH), for an expected cash consideration of A$230 million.
Through the acquisition, Optus will also gain access to up to 98MHz of spectrum in the 2.3GHz band.
Optus plans to use this spectrum to build a new LTE network. It will be integrated with Optus' 1800MHz based LTE network, which will be launched in Newcastle and the Hunter region of New South Wales in April 2012.
Paul O'Sullivan, Optus Chief Executive said "The acquisition of Vividwireless will give Optus a significant increase in network capacity to address the next wave of data growth that is just around the corner. By integrating it with our current 4G rollout (in the 1800MHz band), we will be able to provide increased mobile speeds to our customers in metropolitan Australia."
The agreement includes the transfer of Vividwireless' operating businesses, customer bases, spectrum licences and 4G network.
The successful completion of the transaction is subject to a number of conditions, including the reissue of Vividwireless' 2.3GHz spectrum licence and approval from the ACCC and FIRB. The acquisition will be funded from internal sources of funds and debt.