This morning we hear how the 2013 Wireless Spectrum Auction went yesterday. Telstra as expected has paid $1.3bn for a decent chunk of spectrum to help maintain its superiority in terms of 4G offerings. Optus has spent half that amount. However, the most interesting news is not even that Vodafone (VHA) has not forked out any cash. It is that a new player has made its intentions clear.
TPG has been doing well as a Mobile Virtual Network Operator (MVNO) using Optus' network with a customer base of about 300,000. But it is a big move to enter the fray as the fourth mobile network. They have the advantage of a familiar brand name and image thanks to their popular broadband internet offers. Customers would expect similar low cost plans as well as some attractive bundles.
TPG has proven their capability, and the tech savvy young generation knows TPG well. Their broadband plans had a lot of word of mouth buzz. They really have potential to eat in to the profits of the big players. Lets wait and see.
