Vodafone Australia eyes 2.5GHz spectrum auction

Vodafone Australia has indicated that it will fork out the AU$25,000 for the application fee to potentially participate in the auction for 4G spectrum in the 2.5GHz spectrum band, after earlier pulling out of the 700MHz auction and forcing the government to raise the reserve price of that spectrum.

Applications to participate in the auction are due tomorrow. Telstra has already confirmed its participation in the auction, while Optus consumer CEO Kevin Russell said this week that Optus will submit its application and pay the fee, but did not say whether it would participate in the auction.

Optus has said that the reserve price set for the auction is effectively double what other countries have sought in selling off comparable spectrum.

While Vodafone is clear on staying out of the 700MHz spectrum auction in its current form, the company said it would still apply to potentially participate in the 2.5GHz spectrum auction to be held at the same time in April.

"We will submit our application, which is the next step in the formal process, while we continue to assess our network priorities and the terms of 2.5GHz auction," Vodafone said.

Unlike the 700MHz auction where bidders will secure spectrum across all of Australia, in the 2.5GHz auction, bidders can target specific metropolitan or remote areas of Australia to supplement their existing spectrum holdings in other bands. Vodafone has said it can roll out 4G services without any 700MHz spectrum, due to its large holdings in the 1800MHz spectrum band.